Glass tableware manufacturers Libbey and its subsidiaries based in the US have filed voluntary petitions for Chapter 11 Bankruptcy.
Filed in the US Bankruptcy Court for the District of Delaware, the petitions are for a reorganisation process under the supervision of the court to strengthen its balance sheet.
Libbey is holding discussions with its lenders and other stakeholders for a consensual financial restructuring plan.
Meanwhile, the company’s international subsidiaries in Canada, China, Mexico, the Netherlands and Portugal continue to operate normally and are not part of the proceedings.
Libbey chief executive officer Mike Bauer said: “While we entered 2020 with positive momentum from our strong finish in 2019, the dramatic and prolonged impact of Covid-19 on the demand for our products and on our business is truly unprecedented in Libbey’s more than 200-year history.
“As a result, entering this process is a necessary step to address our liquidity, strengthen our balance sheet and better position Libbey for the future.
“We believe this process will help Libbey become an even stronger, more influential partner to our customers, vendors and end users, and ensure we continue to create the most rewarding experiences with our extensive line of high-quality glassware and other tabletop products.”
Libbey’s existing lenders have agreed to provide up to $160m in debtor-in-possession (DIP) financing, which includes a $100m revolving credit facility and a $60m term loan.
In April this year, Libbey reduced operations at its manufacturing and distribution centres in Mexico in response to the coronavirus outbreak.