Pretium Packaging Files for Chapter 11 Bankruptcy to Restructure Debt

Pretium Packaging, a leading manufacturer of plastic containers and a portfolio company of private equity firm Clearlake Capital Group, has filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the District of New Jersey.

The filing is part of a pre-packaged restructuring agreement with lenders aimed at addressing the company's debt-heavy capital structure, which has been strained by years of financial challenges.

According to court filings, Pretium reported assets and liabilities each ranging between $1B and $10B. The restructuring plan is expected to reduce the company's funded debt by more than $900M, provide over $175M in liquidity, and secure $530M in new near-term debt commitments from existing lenders. Additionally, Clearlake Capital will contribute a $50M equity investment to support the company's long-term growth.

Company's plan to restructure

Pretium's CEO, James Rooney, emphasized the company's commitment to emerging stronger from the restructuring process.

"Under our new, significantly de-leveraged capital structure, we are creating more flexibility to invest in our products, our people, and our customers," Rooney said. "We're committed to completing this process as a stronger organization ready to seize new opportunities, deliver exceptional value to our customers, and deepen our role as a trusted partner to the vendors who help us succeed."

Clearlake Capital, which has been Pretium's equity partner since 2020, expressed confidence in the company's future.

"Clearlake has been a committed partner to Pretium since 2020, and we've watched the business navigate an unprecedented set of macroeconomic challenges in the post-COVID economic environment with remarkable strength," said José E. Feliciano, co-founder and managing partner of Clearlake.

Arta Tabaee, partner and managing director at Clearlake, highlighted Pretium's resilience and the firm's ongoing support.

"Our new investment into Pretium demonstrates our continued commitment to the business, and we will remain Pretium's leading equity partner, including drawing on Clearlake's OPS capabilities to support Pretium's growth," Tabaee said.

Business as usual

As the recapitalization process unfolds, Pretium will continue to operate as usual, fulfilling all vendor and supplier obligations in full for goods and services delivered both before and after the filing. The company remains focused on providing sustainable packaging solutions to its customers while leveraging its improved financial position to drive innovation and operational excellence.

Pretium Packaging specializes in innovative and automated rigid packaging solutions across diverse end markets, including food and specialty beverages, healthcare, personal care, beauty, and household products. The company's packaging solutions utilize materials such as PET, HDPE, and polypropylene resin, with options incorporating up to 100% post-consumer recycled content to support sustainability initiatives.

With a national footprint of 24 automated manufacturing facilities, Pretium differentiates itself through its broad product offerings, responsiveness, and efficient production capabilities, making it a trusted partner for customers across various industries.