TOLEDO, Ohio, June 2, 2020 /PRNewswire/ -- Libbey Inc.
(NYSE American: LBY) ("Libbey" or the "Company"), one of the
world's largest glass tableware manufacturers, today announced that
all "first day" motions related to the Company's voluntary Chapter
11 petitions for reorganization filed on June 1, 2020, have been approved on an interim
basis by the U.S. Bankruptcy Court for the District of Delaware.
At the hearing, among other things, the Court granted Libbey
interim approval for continued access to its $100 million revolving credit facility and an
initial $30 million portion of its
proposed debtor-in-possession ("DIP") financing. The DIP financing
is to be provided by certain of the Company's existing lenders and
consists of a $100 million revolving
credit facility and a $60 million
term loan, and is expected to close this week. The Company 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; and
- Honor customer commitments in the ordinary course of business
and continue customer programs.
Mike Bauer, chief executive
officer of Libbey, said, "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. 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 today 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.
Additional Resources
Additional information is available at
www.LibbeyRestructuringInfo.com. Court filings and other
information related to the court-supervised proceedings are
available at http://cases.primeclerk.com/libbey or by calling
Libbey's claims agent, Prime Clerk, at (877) 429-7404 (or (646)
214-8836 for international calls).
Advisors
Latham & Watkins LLP is serving as legal advisor to Libbey,
Alvarez & Marsal is serving as restructuring advisor and Lazard
is serving as financial advisor.
About Libbey
Inc.
Based in Toledo, Ohio, Libbey
Inc. is one of the largest glass tableware manufacturers in the
world. Libbey Inc. operates manufacturing plants in the U.S.,
Mexico, China, Portugal and the
Netherlands. In existence since 1818, the Company supplies
tabletop products to retail, foodservice and business-to-business
customers in over 100 countries. Libbey's global brand portfolio,
in addition to its namesake brand, includes Libbey Signature®,
Master's Reserve®, Crisa®, Royal Leerdam®, World® Tableware,
Syracuse® China, and Crisal
Glass®. In 2019, Libbey Inc.'s net sales totaled $782.4 million. Additional information is
available at www.libbey.com.
Forward-Looking Statements
This press release includes forward-looking statements as
defined in Section 27A of the Securities Act and Section 21E of the
Securities Exchange Act of 1934, as amended. Such statements
reflect only Libbey's best assessment at this time and are
indicated by words or phrases such as "goal," "plan," "expects,"
"believes," "will," "estimates," "anticipates," or similar phrases.
These forward-looking statements include all matters that are not
historical facts. They include statements regarding the Company's
intentions, beliefs or current expectations concerning, among other
things, the impact of COVID-19 on our operations and the length of
time of such impact, our results of operations, financial
condition, liquidity, prospects, growth, strategies and the impact
of COVID-19 on the industry in which we operate and the industries
we serve. By their nature, forward-looking statements involve risks
and uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. Investors
are cautioned that forward-looking statements are not guarantees of
future performance and that our actual results of operations,
financial condition and liquidity, and the development of the
industry in which we operate, may differ materially from these
statements. Investors should not place undue reliance on such
statements. Important factors potentially affecting performance
include but are not limited to risks and uncertainties related to
the ability to confirm and consummate a plan of reorganization;
risks attendant to the bankruptcy process, including our ability to
obtain court approvals with respect to motions filed in the Chapter
11 proceedings, the outcomes of court rulings and the Chapter 11
proceedings in general and the length of time that we may be
required to operate in bankruptcy; the effectiveness of the overall
restructuring activities pursuant to the Chapter 11 proceedings and
any additional strategies that we may employ to address our
liquidity and capital resources; the actions and decisions of
creditors, regulators and other third parties that have an interest
in the Chapter 11 proceedings, which may interfere with the ability
to confirm and consummate a plan of reorganization; restrictions on
us due to the terms of the proposed DIP financing and restrictions
imposed by the applicable courts; potential delays in the Chapter
11 proceedings due to the effects of COVID-19; the effects of the
Chapter 11 proceedings on the Company and on the interests of
various constituents, including holders of the Company's common
stock; other litigation and inherent risks involved in a bankruptcy
process; the impact of COVID-19 on the global economy, our
associates, our customers and our operations, our high level of
indebtedness and the availability and cost of credit; high interest
rates that increase the Company's borrowing costs or volatility in
the financial markets that could constrain liquidity and credit
availability; the inability to achieve savings and profit
improvements at targeted levels in the Company's operations or
within the intended time periods; increased competition from
foreign suppliers endeavoring to sell glass tableware, ceramic
dinnerware and metalware in our core markets; global economic
conditions and the related impact on consumer spending levels;
major slowdowns or changes in trends in the retail, travel,
restaurant and bar or entertainment industries, and in the retail
and foodservice channels of distribution generally, that impact
demand for our products; inability to meet the demand for new
products; material restructuring charges related to involuntary
employee terminations, facility sales or closures, or other various
restructuring activities; significant increases in per-unit costs
for natural gas, electricity, freight, corrugated packaging, and
other purchased materials; our ability to borrow under our ABL
credit agreement; protracted work stoppages related to collective
bargaining agreements; increased pension expense associated with
lower returns on pension investments and increased pension
obligations; increased tax expense resulting from changes to tax
laws, regulations and evolving interpretations thereof;
devaluations and other major currency fluctuations relative to the
U.S. dollar and the euro that could reduce the cost competitiveness
of the Company's products compared to foreign competition; the
effect of exchange rate changes to the value of the euro, the
Mexican peso, the Chinese renminbi and the Canadian dollar and the
earnings and cash flows of our international operations, expressed
under U.S. GAAP; the effect of high levels of inflation in
countries in which we operate or sell our products; the failure of
our investments in e-commerce, new technology and other capital
expenditures to yield expected returns; failure to prevent
unauthorized access, security breaches and cyber-attacks to our
information technology systems; compliance with, or the failure to
comply with, legal requirements relating to health, safety and
environmental protection; our failure to protect our intellectual
property; and the inability to effectively integrate future
business we acquire or joint ventures into which we enter. These
and other risk factors that could cause results to differ
materially from the forward-looking statements can be found in the
Company's Annual Report on Form 10-K and in the Company's other
filings with the U.S. Securities and Exchange Commission (the
"SEC"). Refer to the Company's most recent SEC filings for any
updates concerning these and other risks and uncertainties that may
affect the Company's operations and performance. Any
forward-looking statements speak only as of the date of this press
release, and the Company assumes no obligation to update or revise
any forward-looking statement to reflect events or circumstances
arising after the date of this press release.
Contacts
Corporate:
PublicRelations@libbey.com
Investors:
Chris Hodges or Bobby Winters
Alpha IR Group
(312) 445-2870
LBY@alpha-ir.com
Media:
Michael Freitag / Ed Trissel / Tim
Ragones
Joele Frank, Wilkinson Brimmer
Katcher
(212) 355-4449
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SOURCE Libbey