Libbey Inc. has gained bankruptcy court approval for its “first day” motions related to its voluntary Chapter 11 petitions for reorganization filed on June 1, 2020.
As previously reported, Libbey filed Chapter 11 for a reorganization to strengthen its balance sheet to navigate the effects of the COVID-19 pandemic and better position the company for the future.
According to Libbey, the court granted the company interim approval for continued access to its $100 million revolving credit facility and an initial $30 million portion of its proposed debtor-in-possession financing. The DIP financing is to be provided by certain of the company’s existing lenders and consists of a $100 million revolving credit facility and a $60 million term loan, and is expected to close this week. Libbey said it expects this financing, together with cash flow from operations, to support operations and its continued service of customers and end users globally during the court-supervised process.
In addition, Libbey received authorization to continue paying employee wages and providing health care and other benefits; continue to pay vendors in the ordinary course for goods and services provided on or after June 1, 2020; and honor customer commitments in the ordinary course of business and continue customer programs.
“We are pleased to have received approval of these motions, which will allow us to continue operating globally and provide high-quality glassware and other tabletop products to our customers without interruption, while maintaining our long-standing relationships with our vendors and business partners,” said Mike Bauer, CEO, Libbey. “We look forward to continuing our constructive discussions with our lenders and other stakeholders regarding the terms of a consensual financial restructuring plan that will enable us to address our liquidity, strengthen our balance sheet and better position Libbey for the future.”