Milbank LLP acted as counsel to an ad hoc group of secured creditors for Pretium Packaging, a leading manufacturer of rigid packaging, throughout their chapter 11 proceedings. Pretium’s successful emergence from chapter 11 is the product of a fully consensual prepackaged plan of reorganization.
Through intensive pre-petition negotiations, Milbank secured a Restructuring Support Agreement ultimately backed by approximately 99.6% of first-lien tranche A-1 lenders and 96.4% of second-lien lenders. A centerpiece of the restructuring was a $533.5 million DIP-to-exit term loan facility, backstopped by the Milbank-represented ad hoc group. That facility provided the liquidity necessary for a rapid exit from bankruptcy approximately one month after filing for chapter 11. Creditors voted unanimously in favor of the prepackaged chapter 11 plan.
As a result of plan confirmation, Pretium shed $900 million in prepetition funded debt. The restructuring preserved thousands of jobs, ensured general unsecured claims remained unimpaired, and positioned Pretium for future growth with ample liquidity to execute its business plan.
The Milbank team included Financial Restructuring partners Evan Fleck and Matthew Brod, special counsel Jason Kestecher, and associate Sibel Iskender; Alternative Investments partner Al Pisa, and associates Alex Shimamura, Jay Kim, Xander Peng, and law clerk Jordan Gunning; Global Corporate partner Scott Golenbock and associate Jacklyn Weon; Tax partner Russell Kestenbaum and associate Mendy Fox; and Corporate Finance and Securities partner Paul Denaro and associate Maria Schweinberger.
