Independent Texas Recyclers, a Houston-based MRF operator , has discontinued operations after a nearly year-long court process to settle an $8 million loan payment dispute with its lender.
Cadence Bank, ITR’s lender, sued the MRF operator and its affiliate, TRITgen, last April after the company allegedly defaulted on an approximately $7.2 million equipment loan and related interest payments. Cadence initiated the loan in August 2022, along with a $2 million revolving line of credit, according to court documents.
The recycler, which had three Houston locations, is now undergoing a sale process with an unnamed buyer to pay down debt. That sale is expected to close March 31. At the same time, corporate turnaround firm Focus Management Group has arranged for many of ITR’s assets to be sold at an auction if this sale isn’t successful. The auction is set for March 18, but could be canceled or pushed back depending on progress on the sale, according to court records.
ITR at one time offered single-stream recycling services for 1 million households in the Houston area, according to its website, and at one time had a recycling contract with the city of Houston. The company sold 95% of its recovered materials to U.S.-based companies and exported the other 5% to Mexico, it said. The company also touted an onsite glass recycling plant within its main facility.
It’s unclear where recycled materials once handled by ITR will go now that it has closed.
According to court documents, ITR took out the loan for items such as wheel loaders, balers, conveyors and other MRF equipment, but did not make scheduled loan payments throughout 2023. As a result, Cadence accelerated the maturity date for the loan and on March 21 declared the entire outstanding balance of $8 million due. Cadence took ITR to court after that amount was not paid, according to court documents.
As part of the legal process, ITR was put under receivership on April 15, and Focus Management Group took control of day-to-day operations. Focus said it implemented “various cost-savings measures” during that time and was able to run the business “at a break-even pace,” despite setbacks such as Hurricane Beryl in July 2024 that impacted operations.
However, Focus told a judge that the company couldn’t continue to operate long-term, and determined that “its future (if any) relied on an acquisition by a strategic buyer.” The firm has since stopped ITR’s day-to-day operations.
ITR was put up for sale on Oct. 11 with an asking price of $2.2 million. One potential buyer negotiated a $1.2 million sale price, but ultimately walked away from the deal.
According to Feb. 26 court documents, Focus is working with another potential buyer interested in purchasing most of the assets for about $1.35 million, plus an agreement to pay ongoing rent payments at one of its locations for 90 days. That buyer has already put down a $150,000 deposit, which is nonrefundable except in limited cases.
ITR could not be reached for comment prior to publication.
Correction: A previous version of this article misstated the title of a former ITR executive that was contacted for comment.
