TOLEDO, Ohio, June 1, 2020 /PRNewswire/ -- Libbey Inc. (NYSE
American: LBY) ("Libbey" or the "Company"), one of the world's
largest glass tableware manufacturers, today announced that the
Company and its U.S.-based subsidiaries have filed voluntary
petitions for a court-supervised reorganization under Chapter 11 of
the Bankruptcy Code in the U.S. Bankruptcy Court for the District
of Delaware. 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.
Libbey 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.
Libbey is continuing constructive discussions with its lenders and
other stakeholders regarding the terms of a consensual financial
restructuring plan and is focused on moving through the process as
efficiently as possible.
Certain of Libbey's existing lenders have agreed to provide up
to $160 million in
debtor-in-possession ("DIP") financing, including a $100 million revolving credit facility and a
$60 million term loan. Following
court approval, the Company expects this financing, together with
cash flow from operations, to support the business during the
court-supervised process. The Company is continuing to serve
customers and end users globally, and will continue to evaluate the
operating environment and make adjustments, as necessary, to adapt
to the impact of COVID-19.
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. We believe this process will help
Libbey become an even stronger, more influential partner to our
customers, vendors and end users, and ensure we continue to create
the most rewarding experiences with our extensive line of
high-quality glassware and other tabletop products."
He continued, "Throughout our history, Libbey has been dedicated
to delivering the finest glassware and tabletop products to the
world and empowering consumers to celebrate life's moments. As we
navigate the current environment, we remain focused on providing
end users with products that are environmentally sustainable,
beautiful and durable. We are already seeing some improvement in
our end markets with the gradual lifting of stay-at-home
restrictions, and during the past few weeks have reopened our U.S.
distribution centers and restarted several production lines in
Toledo, Ohio and Shreveport, Louisiana. I want to thank all of
our employees for their continued dedication and tireless efforts,
especially during the unprecedented uncertainty we are collectively
facing due to COVID-19. I also would like to thank our lenders for
their continued support and look forward to working with them and
all our stakeholders as we move forward."
Libbey is filing customary first day motions that, once approved
by the Court, will allow the Company to smoothly transition its
business into Chapter 11, including, among other things, granting
authority to pay employee wages and benefits and honor customer
commitments in the ordinary course of business. The Company will
also pay vendors in the ordinary course for all goods and services
provided on or after the Chapter 11 filing date.
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 Inc.
