Pretium Packaging has confirmed a pre-packaged Chapter 11 bankruptcy process after entering an agreement with its current lenders and majority owner, Clearlake Capital Group.

The move is intended to power the long-term growth of the business, which was acquired by Clearlake in 2020.

The restructuring plan was confirmed after an earlier report by Bloomberg.

Under the proposed restructuring, Pretium’s total funded debt is set to decrease by more than $900m. The company will also gain access to over $175m in liquidity.

The plan includes commitments from existing lenders for more than $530m in new short-term debt, as well as a $50m equity injection from Clearlake.

Pretium stated that during the restructuring period, its operations will continue without interruption.

The company said it will meet all obligations to suppliers and vendors for deliveries made before and after the Chapter 11 filing.

The proposed recapitalisation has garnered the backing of 90% of Pretium's secured lenders, including Wells Fargo, the company's asset-based lending provider.

Pretium indicated it remains in talks with other key stakeholders and expects to finalise the restructuring promptly.

To proceed with the transaction, Pretium has filed pre-packaged Chapter 11 petitions with the US bankruptcy court for the District of New Jersey.

Pretium CEO James Rooney said: "Over the past few years, Pretium has continued to make significant strides in strengthening the business through improvements in manufacturing excellence, product innovation, and sustainability, achieving significant growth despite industry-wide headwinds within packaging.

"Under our new, significantly de-leveraged capital structure, we are creating more flexibility to invest in our products, our people, and our customers. We're committed to completing this process as a stronger organisation ready to seize new opportunities, deliver exceptional value to our customers, and deepen our role as a trusted partner to the vendors who help us succeed."