Pliant Corporation, a leading producer of value-added film and flexible packaging, has announced to implement a financial restructuring plan via a voluntary Chapter 11 filings of its US and Canadian operations in the US Bankruptcy Court. The company says that the plan - submitted as a pre-negotiated package - is expected to eliminate all of its high-yield debt or US$674 mln of long-term bonds. When implemented, the company's senior management will accelerate its business plans including cost reduction, plant consolidation, new equipment, innovation and globalization. However, filings are not intended for the Company's European, Latin American or Australian operations.
Also as a part of this pre-negotiated package, the Company has arranged for access to an additional US$75 mln of interim financing, if required. 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."