TOLEDO, Ohio (KTAL/KMSS) – One of the world’s largest glass tableware manufacturers, which has a plant in Shreveport, today announced it has filed Chapter 11 Bankruptcy.
In Shreveport, the Libbey Glass Factory is located at 4302 Jewella Ave. As the news release only came in late Monday afternoon, we were unable to contact the Shreveport facility to learn the implications on the local plant and its employees.
The Company and its U.S.-based subsidiaries 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.
Libbey filed first day motions that, if approved by the Court, will allow the Company to smoothly transition its business into Chapter 11, including, among other things, granting authority to pay employee wages and benefits and honor customer commitments in the ordinary course of business.
The Company will also pay vendors in the ordinary course for all goods and services provided on or after the Chapter 11 filing date.
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.
In its announcement, the company said it plans to use the restructuring process to help navigate the consequences of the COVID-19 pandemic slowdown that it believes contributed to its financial problems.
Further, the company said it is continuing 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.
Some 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.
If the court approves the restructuring, the company expects this financing and cash flow from operations in order to support the business during the court-supervised process.
The company will continue to serve customers and end users globally, and evaluate the operating environment and make adjustments to adapt to the impact of COVID-19.