US tableware manufacturer Libbey Inc. has filed for Chapter 11 bankruptcy.
It has filed for a court-organised reorganisation of the business under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court of Delaware.
It 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.”
The company’s international subsidiaries in Mexico, The Netherlands, Canada, Portugal and China are not included in the motion and are operating normally, it said.
The company’s existing lenders have agreed to provide a $100 million revolving credit facility and a $60 million term loan as debtor-in-possession financing.
Mike Bauer, chief executive officer of Libbey, 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."