Libbey has successfully completed its financial restructuring and emerged from Chapter 11, which is the legal term for the reorganisation bankruptcy of a company.
Through its ‘Plan of Reorganisation’, Libbey is emerging from Chapter 11 as a new private company formed and controlled by Libbey’s former lenders, Libbey Glass LLC, and will remain under the same leadership.
The company emerges with substantial liquidity, supported by proceeds from a $150 million term loan and a $100 million asset-based lending facility.
Libbey has reportedly reduced operating costs, strengthened its balance sheet and improved liquidity by reducing net debt to less than $150 million.
Mike Bauer, Chief Executive Officer of Libbey, said: "This is an important day for Libbey as we begin a new chapter as a healthy company with the agility to succeed.
“Looking ahead, we will maintain our focus on managing costs, providing superior service to our customers and strengthening relationships with our business partners, while demonstrating the same unwavering commitment to creating high-quality glassware and other tabletop products that has been a hallmark of Libbey for the past 200+ years.”
He added: "Our emergence from this process in less than six months is a testament to the faith, hard work and resilience of our nearly 6,000 employees globally, who continue to deliver unsurpassed service, product innovations and business excellence.”
Libbey has now entered into new financing arrangements with Mitsubishi UFJ Financial Group (MUFG) Union Bank, N.A. and a group comprised of a number of Libbey's lenders and equity owners.