Libbey commences Chapter 11 reorganizationChristian Fernsby ▼ | June 1, 2020
Libbey announced that the Company and its U.S.-based subsidiaries have filed voluntary petitions for a court-supervised reorganization under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
Chapter 11 Libbey
Topics: Libbey Chapter 11
Libbey expects to use the court-supervised restructuring process to strengthen its balance sheet to navigate the effects of the coronavirus pandemic and better position the Company for the future.
Libbey is continuing constructive discussions with its lenders and other stakeholders regarding the terms of a consensual financial restructuring plan and is focused on moving through the process as efficiently as possible.
Certain of Libbey's existing lenders have agreed to provide up to $160 million in debtor-in-possession ("DIP") financing, including a $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.
The Company is continuing to serve customers and end users globally, and will continue to evaluate the operating environment and make adjustments, as necessary, to adapt to the impact of coronavirus. ■