Pliant Corporation Files Restructuring Plan for U.S. and Canadian Operations
Schaumburg, Illinois, USA, 11 February 2009 – Pliant Corporation announced today that it has submitted a financial restructuring plan to eliminate all of its high-yield debt or USD 674 million of long-term bonds. The plan was submitted as part of a prenegotiated package. This is a transformational event for Pliant. When implemented, the company’s senior management will accelerate its business plans. This includes cost reduction, plant consolidation, new equipment, innovation, and globalization.
This plan will be implemented via a voluntary Chapter 11 process of its U.S. and Canadian operations. Filings are not intended for the company’s European, Latin American, or Australian operations. The filings were made today in U.S. Bankruptcy Court.
Pliant will continue to operate in a business-as-usual manner during the restructuring process. All of the company’s operations around the world are open and will continue to serve customers as usual. As part of this prenegotiated package, the company has arranged for access to an additional USD 75 million of interim financing, if needed.
Harold Bevis, Pliant’s president and chief executive officer, said: “We are proud of our accomplishments over the past several years of bringing new innovations to market, improving the quality of our products and services, and lowering our costs across our business. However, during this period, we have also been burdened by a significant amount of debt, which has limited our ability to advance our company at the pace we want. This restructuring will allow us to significantly improve our financial position and allow us to continue to be a leading provider of innovative, value-added film and flexible packaging products.”
Pliant’s principal legal advisors for the restructuring process and Chapter 11 proceedings are Sidley Austin LLP and Young Conaway Stargatt & Taylor LLP. The Company's financial advisor is Jefferies & Company, Inc. Additional information about Pliant’s restructuring will be made available at www.pliantcorp.com.
Pliant Corporation is a leading producer of value-added film and flexible packaging products for personal care, medical, food, industrial, and agricultural markets. The company operates 21 manufacturing and research and development facilities around the world, and employs approximately 2900 people.