Pretium Packaging files for pre-packaged Chapter 11 to restructure debt

Pretium Packaging has confirmed a pre-packaged Chapter 11 bankruptcy process aft entering an statement with its existent lenders and bulk owner, Clearlake Capital Group.

The determination is intended to powerfulness the semipermanent maturation of the business, which was acquired by Clearlake successful 2020.

The restructuring program was confirmed aft an earlier study by Bloomberg.

Under the projected restructuring, Pretium’s full funded indebtedness is acceptable to alteration by much than $900m. The institution volition besides summation entree to implicit $175m successful liquidity.

The program includes commitments from existing lenders for much than $530m successful caller short-term debt, arsenic good arsenic a $50m equity injection from Clearlake.

Pretium stated that during the restructuring period, its operations volition proceed without interruption.

The institution said it volition conscionable each obligations to suppliers and vendors for deliveries made earlier and aft the Chapter 11 filing.

The projected recapitalisation has garnered the backing of 90% of Pretium's secured lenders, including Wells Fargo, the company's asset-based lending provider.

Pretium indicated it remains successful talks with different cardinal stakeholders and expects to finalise the restructuring promptly.

To proceed with the transaction, Pretium has filed pre-packaged Chapter 11 petitions with the US bankruptcy tribunal for the District of New Jersey.

Pretium CEO James Rooney said: "Over the past fewer years, Pretium has continued to marque important strides successful strengthening the concern done improvements successful manufacturing excellence, merchandise innovation, and sustainability, achieving important maturation contempt industry-wide headwinds wrong packaging.

"Under our new, importantly de-leveraged superior structure, we are creating much flexibility to put successful our products, our people, and our customers. We're committed to completing this process arsenic a stronger organisation acceptable to prehend caller opportunities, present exceptional worth to our customers, and deepen our relation arsenic a trusted spouse to the vendors who assistance america succeed."

"Pretium Packaging files for pre-packaged Chapter 11 to restructure debt" was primitively created and published by Packaging Gateway, a GlobalData owned brand.

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