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.

Leadership Sees Reset, Not Retreat

“Under our new, significantly de-leveraged capital structure, we are creating more flexibility to invest in our products, our people, and our customers,” CEO James Rooney said in a statement. He added that the company aims to exit the process stronger and better positioned to deliver value to customers and partners.

Post-Pandemic Pressures Took a Toll

In a first-day declaration, Barreto said Pretium has faced mounting challenges as demand normalized across the industry after the pandemic, leading to softer order volumes and lower manufacturing utilization.

Those pressures were compounded by inflation, supply chain disruptions and other operational hurdles, he said, creating headwinds that ultimately pushed the company toward restructuring.

Creditors, Operations and Workforce

Pretium listed up to 10,000 creditors in its petition. Among the largest unsecured creditors are Polymers Sales & Logistic, holding about $2.8 million in trade claims, and Equistar Chemicals LP, owed roughly $1.8 million.

Founded in 1992 and headquartered in St. Louis, Pretium is a major producer of rigid packaging, manufacturing plastic bottles, jars, closures, trays and other containers. As of the filing date, the company operates 24 manufacturing facilities across the United States, Canada, Mexico, Ireland and the Netherlands, and employs about 3,100 people worldwide.

A company representative did not immediately respond to a request for comment Thursday.

Pretium is represented in the Chapter 11 case by Michael D. Sirota of Cole Schotz PC.