Film producer Pliant Corp. of Schaumburg, Ill., has had its plan of reorganization approved by a U.S. Bankruptcy Court in Wilmington, Del.
The company filed Jan. 3 for Chapter 11 bankruptcy protection. Hampered by debt, Pliant has struggled with price increases for resin, freight and energy. In its filing, Pliant listed total assets of $604.2 million and total debts of nearly $1.2 billion, based on unaudited financial data.
Judge Mary Walrath approved the plan June 23, according to court documents. The approved plan is Pliant's fourth version.
Under the new plan, Pliant will exit Chapter 11 by early July. The firm will have a $200 million exit loan from Merrill Lynch Commercial Finance Corp.
Pliant officials said in a news release the plan will increase Pliant's free cash flow and reduce debt and interest expense. The plan includes payment of all outstanding pre-petition trade vendor claims.
The plan includes Pliant Corp. and subsidiaries Uniplast Holdings Inc., Pliant Corp. International, Pliant Solutions Corp., Pliant Film Products of Mexico Inc., Pliant Packaging of Canada LLC, Pliant Investment Inc., Alliant Co. LLC, Uniplast U.S. Inc., Uniplast Industries Co. and Pliant Corp. of Canada Ltd.