Strategic Materials (SMI) has filed for bankruptcy, which will see the company restructure to reduce its total debt by over $300 million.

SMI, and some of its US domestic subsidiaries, have filed voluntary petitions for reorganisation under Chapter 11 of the United States Bankruptcy Code.

During the restructuring, the company intends to operate its business without disruption.

The company's Canadian and Mexican based operating affiliates are not part of the bankruptcy process.

SMI has secured financing of $23 million, subject to Court approval, from existing lenders to support its business operations.

This will allow SMI to continue meeting its obligations to its customers, suppliers, and employees.

It will also allow the company to financially restructure and reorganise the business, which includes reducing its debt by over $300 million.

The restructuring will also ensure the business' long-term growth.

All employees will continue to receive pay and benefits, and suppliers of goods and services will be paid in the ordinary course.

Chris Dods, CEO of SMI, said: "We play a critical role for the customers and communities we serve.

"The past several years presented significant operational and financial challenges, requiring a comprehensive restructuring of the balance sheet of the company.

“We are grateful for the demonstration of confidence in our underlying business, represented by substantial new financing committed from the lender group."