Libbey Files For Chapter 11 Reorganization
(RTTNews) - Libbey Inc. (LBY), a glass tableware manufacturer, announced Monday that it has filed voluntary petitions for a court-supervised reorganization.
The filing for the reorganization for the company and its U.S. units was under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
Libbey's international units in Canada, China, Mexico, the Netherlands and Portugal are not included in the Chapter 11 proceedings and are operating normally.
The company said the court-supervised restructuring process would be used to strengthen its balance sheet to navigate the effects of the COVID-19 pandemic.
Libbey is in talks with its lenders and other stakeholders regarding the terms of a consensual financial restructuring plan. The company has $160 million in agreed financing from some of its existing lenders. This includes $100 million revolving credit facility and a $60 million term loan.
Following court approval, the company expects this financing, together with cash flow from operations, to support the business during the court-supervised process.
Mike Bauer, chief executive officer of Libbey, said, "While we entered 2020 with positive momentum from our strong finish in 2019, the dramatic and prolonged impact of COVID-19 on the demand for our products and on our business is truly unprecedented in Libbey's more than 200-year history. As a result, entering this process is a necessary step to address our liquidity, strengthen our balance sheet and better position Libbey for the future."
