Libbey Inc., one of the world's largest glass tableware manufacturers, announced that all "first day" motions related to the Company's voluntary Chapter 11 petitions for reorganization filed on June 1, 2020, have been approved on an interim basis by the U.S. Bankruptcy Court for the District of Delaware.
At the hearing, among other things, the Court granted Libbey interim approval for continued access to its $100 million revolving credit facility and an initial $30 million portion of its proposed debtor-in-possession ("DIP") 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. The Company 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 healthcare 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.
Mike Bauer, chief executive officer of Libbey, said, "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. 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. We thank our lenders for their continued support, our customers for their loyalty and our employees for their hard work as we manage through the current environment. We expect to emerge from this process later this year."
Libbey's international subsidiaries in Canada, China, Mexico, the Netherlands and Portugal are not included in the Chapter 11 proceedings and are operating in the normal course of business.