Tableware specialist files bankruptcy petition
Libbey and its USA subsidiaries have filed for a court-supervised reorganisation under Chapter 11 of the Bankruptcy Code in the US Bankruptcy Court for the District of Delaware. The glass tableware company’s international subsidiaries in Canada, China, Mexico, the Netherlands and Portugal are not included in the Chapter 11 proceedings and are said to be operating normally.
Libbey expects to use the court-supervised restructuring process to strengthen its balance sheet to navigate the effects of the Covid-19 pandemic and better position the company for the future. Discussions continue with lenders and other stakeholders regarding the terms of a consensual financial restructuring plan.
Some of Libbey's existing lenders have agreed to provide up to $160 million in debtor-in-possession 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. Libbey 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 Covid-19.
A separate report on toledoblade.com indicates that Libbey has awarded key executives a combined $3.1 million in bonuses to dissuade them from leaving the company as it navigates through disruptions to its business model.