(Reuters) – Pliant Corp, a maker of plastic shrink wrap used in packaging, filed for Chapter 11 protection in a U.S. bankruptcy court on Wednesday, struggling under a heavy debt load.
The company, which is looking to continue its business as usual, said it planned to eliminate $674 million worth of long-term bonds and had arranged for access to an additional $75 million of interim financing, as part of its restructuring process.
Pliant had filed for Chapter 11 protection in January 2006 but later emerged from bankruptcy in July of the same year.
In its 2006 bankruptcy filing, the company had listed assets of about $604.3 million and liabilities of about $1.2 billion.
“This restructuring will allow us to significantly improve our financial position,” Chief Executive Harold Bevis said in a statement.
Restructuring plans include plant consolidation, unspecified cost reductions and new equipment, the company said.
In documents filed with the bankruptcy court, Pliant listed assets of $688.6 million and liabilities of $1.03 billion.
The Schaumburg, Illinois-based company operates more than 20 manufacturing and research and development facilities across the world and employs more than 2,900 people, according to the company’s website.
The case is In re: Pliant Corp, No 09-10443, U.S. Bankruptcy Court, District of Delaware.
By Santosh Nadgir
(Additional reporting by Chelsea Emery in New York; Editing by Amitha Rajan, Anil D’Silva)