For a second time, Libbey Inc. has extended the timeline under which it intends to emerge from chapter 11 bankruptcy, the Toledo (Ohio) Blade reported. In documents filed last week the Toledo-based table glass and stemware maker, which filed for bankruptcy protection on June 1, said it has received permission from the lender group backing its attempt to become solvent to extend the date by which a bankruptcy court judge will confirm a reorganization plan to Oct. 20. The lenders also agreed to extend the date by which Libbey must execute its reorganization plan to Oct. 26. Just a few weeks earlier, Libbey said that it had pushed back the date that the judge must approve its plan to Oct. 5 and the date by which it would execute that plan to Oct. 7. A preliminary reorganization plan was submitted to the federal bankruptcy court in Delaware on Aug. 21. A judge approved the plan on Aug. 24. But a final plan must be agreed upon by lenders and creditors. The reason Libbey sought a second extension from its lenders was because it had yet to strike a deal between the company and its worker unions to modify their collective bargaining agreements with regard to retiree health and welfare benefits. The century-old glass making firm announced yesterday that it had reached consensual, ratified agreements with the United Steelworkers and the International Association of Machinists & Aerospace Workers that resolved the retiree benefits issue. The changes will provide cost reductions that the company says it needs to successfully emerge from bankruptcy. The contract changes extend through 2024 and provide the company with some financial stability. The contract changes must be approved by the bankruptcy court.
