The U.S. Bankruptcy Court for the District of Delaware approved Libbey’s first day motions as part of its voluntary Chapter 11 petitions for reorganization, including approval of an initial $30 million of proposed debtor-in-possession financing for which Cortland Capital Market Services is serving as administrative agent and collateral agent, according to an 8K.
At the hearing, among other things, the court granted Libbey interim approval for continued access to its $100 million revolving credit facility and the initial $30 million portion of its proposed debtor-in-possession financing. According to an 8K filed with the SEC, Cortland Capital Market Services is serving as administrative agent and collateral agent for the DIP financing, which consists of a $100 million revolving credit facility and a $60 million term loan, and is expected to close this week. Libbey 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
- Honor customer commitments in the ordinary course of business and continue customer programs
“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,” Mike Bauer, CEO of Libbey, said. “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.
In connection with the announcement of the Chapter 11 proceedings, the NYSE Regulation notified Libbey that it will commence delisting proceedings of Libbey’s common stock from the NYSE American pursuant to Section 1003(c)(iii) of the NYSE American Company Guide.
As previously reported, Alvarez & Marsal is serving as restructuring advisor, Lazard is serving as financial advisor and Latham & Watkins is serving as legal advisor to Libbey.
Based in Toledo, OH, Libbey is a glass tableware manufacturer.