Pyxus International’s amended joint prepackaged Chapter 11 plan of reorganization was confirmed by the United States Bankruptcy Court for the District of Delaware on Aug. 21 and has become effective. As a result, Pyxus has completed its financial restructuring and emerged from Chapter 11 with its debt reduced by more than $400 million and maturities extended.

“Over the last two months, we have been keenly focused on enhancing the company’s financial flexibility, and the completion of our financial restructuring process is a significant step forward,” Pieter Sikkel, president and CEO of Pyxus, said. “We are now a stronger and more competitive company with a foundation that bolsters our position in targeted markets and enables us to drive long-term value for all of our stakeholders. I want to thank our exceptional team at Pyxus for their commitment and continued focus through this process. We are also grateful for the support of our vendors, suppliers, customers and partners and we look forward to working together for years to come.”

Under the terms of the plan, Pyxus completed a balance sheet restructuring that includes the extension of the maturity of its existing first lien debt, the elimination of $635 million in principal amount of existing second lien debt, as well as the addition of a $213 million exit term loan, which replaced the debtor-in-possession financing incurred in connection with the Chapter 11 cases, and a $75 million exit asset based revolving facility. The elimination of the second lien debt and access to new working capital lines of credit, including foreign credit facilities, strengthens the company’s balance sheet.

Pursuant to the plan, in connection with the effectiveness of the plan, a series of corporate transactions were completed which resulted in the company being a new corporation renamed Pyxus International, which through its subsidiaries continues to operate the company’s businesses, while the corporation formerly known as Pyxus International has changed its name to Old Holdco, Inc. Upon the effectiveness of the plan, all outstanding shares of Old Holdco, Inc. were cancelled.

Glendon Capital Management and Monarch Alternative Capital are leading the investment in the Pyxus’ exit term loan facility. Collectively, Monarch and Glendon will own a majority of the new equity in the company.

In accordance with the plan, Pyxus’ board of directors is composed of three members, including Sikkel, Patrick Fallon (principal at Monarch) and Holly Kim (partner at Glendon).

“We see tremendous opportunity for a delevered Pyxus,” Kim said. “We are excited to work with the management team going forward to unlock the company’s full potential.”

Simpson Thacher & Bartlett served as legal counsel, while Lazard and RPA Advisors served as financial advisors to Pyxus.

Pyxus International is a global agricultural company.