Libbey Glass Files for Chapter 11 Bankruptcy

In 1922, the Libbey-Owens Sheet Glass Plant opened in Shreveport.  When it did, it instantly became the city's largest manufacturer and employer.  Now, it looks like this near-century old pillar of our community is the latest in our area to feel the business pains of the Coronavirus pandemic.

PRN Newswire made the bombshell announcement this morning that Shreveport industrial giant Libbey Inc. has "...filed voluntary petitions for a court-supervised reorganization under Chapter 11 of the Bankruptcy Code."

According to the report, the company finished 2019 strong, and expected to take that momentum into 2020.  Unfortunately, the Coronavirus pandemic hit and affected every single business everywhere.  Libbey's glass business was no exception.  The time-honored glass table-ware maker saw demand for their products fall across the board.  When large portions of the retail landscape closed up in the name of public safety, there was simply very few places you could purchase their products.

Luckily, the company has financing lined up to the tune of $160 million to smooth the transition into the reorganization phase.  The cash will help ensure that debts get paid, production lines keep rolling, and most importantly - plants stay open.  $100 million will be used in a revolving line of credit so that Libbey can continue to supply their factories.  The remaining $60 million will reportedly be a lump-sum given to the company in the form of a termed loan.

Reportedly, the bankruptcy filing will apply to Libbey's domestic operations that include: Toledo, Ohio and Shreveport, Louisiana.  The glass giant's international holdings in Canada, China, Mexico, the Netherlands and Portugal are not included in the filing.  At the time of the report this morning, there was no comment on how many if any layoffs would result from the reorganization.