As Libbey continues to navigate its recent bankruptcy filing, it has filed an amended plan of reorganization and a related disclosure statement in the U.S. Bankruptcy Court for the District of Delaware.
According to the company, the plan outlines the company’s proposal to strengthen its balance sheet, reduce debt and improve liquidity in order to emerge from bankruptcy as a financially stronger company.
Highlights of the amended reorganization plan includes a term sheet from seven of its lenders to provide $150 million in exit financing. Libbey said it also expects to replace its $100 million DIP revolving credit facility with a new exit facility with approximately $20 million initially drawn. Overall, the company expects to emerge from the Chapter 11 process with less than $200 million of funded debt, compared to more than $400 million of debt that existed at the beginning of the court-supervised process.
In addition, the amended agreement includes collective bargaining agreements with its debtors and union-related retiree benefits, both of which will provide cost reductions that are essential to the company’s successful reorganization, Libbey said.
The company also said it plans to follow through with the plan to close its manufacturing facility in Shreveport, Louisiana, and intends to cease production by the end of 2020, with full closure to be completed by the second half of 2022.
“We continue to make important progress and are on a path to complete our restructuring later this year,” said Mike Bauer, CEO, Libbey. “While we recognize the impact of the proposed modifications to the CBAs for our union employees and union retirees, we believe the changes are essential to ensure our successful emergence from Chapter 11. The cost savings and operational improvements they will help us achieve will preserve approximately 1,200 U.S. jobs and make Libbey a stronger company going forward. We remain committed to continuing good-faith negotiations with our unions throughout this process.”