Pretium Packaging filed for Chapter 11 in a New Jersey bankruptcy court, setting in motion a pre-packaged restructuring designed to carve more than $900 million off the Missouri-based company’s funded debt and stabilize its balance sheet.
The filing late Wednesday lays out a fast-track plan aimed at shoring up liquidity and positioning the packaging manufacturer for a stronger post-bankruptcy future.
Balance Sheet Under Court Protection
In court papers, Chief Financial Officer J. Federico Barreto said Pretium and nine affiliated entities each report between $1 billion and $10 billion in assets and liabilities. The company’s financial snapshot underscores both the scale of its operations and the weight of the debt it is now seeking to shed.
Lenders and Sponsor Back the Plan
Pretium said it reached an agreement with its existing lenders and equity sponsor, Clearlake Capital Group LP, to pursue the pre-packaged Chapter 11 transaction.
Under the deal, the company expects to cut funded debt by more than $900 million, unlock more than $175 million in liquidity and line up new debt and equity financing. That package includes more than $530 million in new near-term debt commitments from current lenders, a $50 million equity infusion from Clearlake and a $100 million exit asset-based lending facility once Pretium emerges from Chapter 11.
General unsecured creditors are expected to be paid in full or have their claims reinstated, according to the filing.
