EX-99.1 2 ex_199761.htm EXHIBIT 99.1 ex_196091.htm

Exhibit 99.1

 

 

 

In re: LIBBEY GLASS INC., et. al. 

Case No.

20-11439 (LSS)

          Debtors

Reporting Period:

July 2020
     
     

Monthly Operating Report For the

Month Ending July 31, 2020
               
 

REQUIRED DOCUMENTS

Form No.

Document

Attached

Explanation

Attached
 

Schedule of Cash Receipts and Disbursements

MOR-1

X

 
 

     Bank Reconciliation (or copies of debtor's bank reconciliations)

MOR-1a

 

X
 

     Schedule of Cash Disbursements by Legal Entity

MOR-1b

X

 
 

     Schedule of Professional Fees Paid

MOR-1c

X

 
 

     Copies of bank statements

 

 

 X
 

     Cash disbursements journals

 

 

 X
 

Statement of Operations

MOR-2

X

 
 

Balance Sheet

MOR-3

X

 
 

Status of Post-petition Taxes

MOR-4a

X

 
 

     Declaration Regarding the Status of Post-Petition Taxes

MOR-4a

X

 
 

     Copies of IRS Form 6123 or payment receipt

 

 

 X
 

     Copies of tax returns filed during reporting period

 

 

 X
 

Consolidated Aging of Accounts Payable not Subject to Compromise

MOR-4

X

 
 

Accounts Receivable Reconciliation and Aging

MOR-5

X

 
 

Debtor Questionnaire

MOR-5

X

 
               
               

This Monthly Operating Report ("MOR") has been prepared solely for the purpose of complying with the monthly reporting requirements applicable in the Debtors' chapter 11 cases and format specified by the United States Trustee. The financial information contained herein is limited in scope and covers a limited time period. Moreover, such information is preliminary and unaudited, and is not prepared in accordance with U.S. GAAP.
               

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.
               
     
     
     

/s/ Juan Amezquita

  

August 28, 2020

Signature of Authorized Individual 1

  

Date
     
     

Juan Amezquita

  

Senior Vice President, Chief Financial Officer

Printed Name of Authorized Individual

  

Title of Authorized Individual
               

Notes:

 

 

 

 

 

 

(1) Signatory is duly authorized by the Debtors to sign this monthly operating report.

      

 

 
 

 

In re: LIBBEY GLASS INC., et. al. 

      

Case No.

20-11439 (LSS)

 Debtors

 

 

 

 

Reporting Period: 

July 2020
               

 

General Notes

 

 

Debtor-in-Possession Financial Statements

The financial statements and supplemental information contained herein are unaudited, preliminary, and may not comply with generally accepted accounting principles in the United States of America ("U.S. GAAP") in all material respects. 

 

Accounting Standards Codification (“ASC”) Topic 852, “Reorganizations” (“ASC Topic 852”), which is applicable to companies in chapter 11, generally does not change the manner in which financial statements are prepared. It does require, however, that the financial statements for periods subsequent to the filing of the chapter 11 petition distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. The Debtors’ condensed combined financial statements contained herein have been prepared in accordance with the guidance in ASC Topic 852. The unaudited condensed combined financial statements have been derived from the books and records of the Debtors. This information, however, has not been subject to procedures that would typically be applied to financial information presented in accordance with U.S. GAAP, and upon the application of such procedures, the Debtors believe that the financial information could be subject to changes, and these changes could be material. The information furnished in this report includes primarily normal recurring adjustments, but does not include all of the adjustments that would typically be made in accordance with U.S. GAAP.

 

The results of operations contained herein are not necessarily indicative of results which may be expected from any other period or for the full year and may not necessarily reflect the results of operations, financial position and cash flows of the Debtors in the future.

 

The information contained herein is provided to fulfill the requirements of the Office of the United States Trustee. The financial statements provided here do not include consolidated results for Libbey, Inc. (the "Company") as the Company has several non-debtor subsidiaries.

 

Intercompany Transactions

Intercompany transactions between the Debtors have not been eliminated in the financial statements contained herein. For Balance Sheet illustrative purposes, the intercompany transactions have been presented as an "eliminations" column. No conclusion as to the legal obligation related to these intercompany transactions is made by the presentation herein.

 

Liabilities Subject to Compromise

As a result of the chapter 11 filings, the payment of prepetition indebtedness is subject to compromise or other treatment under a plan of reorganization. The determination of how liabilities will ultimately be settled or treated cannot be made until the Bankruptcy Court approves a chapter 11 plan of reorganization. Accordingly, the ultimate amount of such liabilities is not determinable at this time. Prepetition liabilities that are subject to compromise have been reported at the amounts expected to be allowed as claims, even if they may be settled for lesser amounts. The amounts currently classified as liabilities subject to compromise are preliminary and may be subject to future adjustments depending on Court actions, further developments with respect to disputed claims, determinations of the secured status of certain claims, the values of any collateral securing such claims, rejection of executory contracts, continued reconciliation or other events.

 

Reorganization Items

Expenses and income directly associated with the chapter 11 filings have been reported separately in the income statement as reorganization items. Reorganization items includes expenses related to legal advisory and representation services, other professional consulting and advisory services, debtor-in-possession financing fees and changes in liabilities subject to compromise recognized as there are changes in amounts expected to be allowed as claims.

 

 
 

 

 

In re: LIBBEY GLASS INC., et. al. 

Case No.

20-11439 (LSS)

 Debtors

Reporting Period:

July 2020

 

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

MOR-1

CONSOLIDATED STATEMENT OF CASH FLOWS

For the Period of July 1, 2020 through July 31, 2020

(US Dollars in Thousands)

(Unaudited)

 

   

CF Period of July 1, 2020 through July 31, 2020

  

Receipts:

        

Total Receipts

   $ 21,406  
         

Disbursements:

        

Operating Disbursements - 3rd Party

     (23,244 )

Operating Disbursements - Non-Debtor Affiliate

     (2,553 )

Net Operating Cash Flow

     (4,392 )
         

Non-Operating Disbursements:

       

Professional Fees ⁽¹⁾

     (1,026 )

Interest Payments / Fees

     (241 )

Total Non-Operating Disbursements

     (1,268 )

Total Chapter 11 Items

     (442 )
         

Total Disbursements ⁽²⁾

     (27,507 )
         

Net Cash Flow

   $ (6,101 )
         

Cash Balance:

        

Beginning Cash Book Balance

   $ 14,657  

Net Cash Flow (excl. Draws/Paydowns)

     (6,101 )

DIP Reserve Account ⁽³⁾

     24,200  

Draws/Paydowns ⁽⁴⁾

     5,400  

Exchange Rate Gain/(Loss) ⁽⁵⁾

     2  

Difference in O/S Checks relative to G/L

     (349 )

Ending Cash Book Balance

   $ 37,809  

 

Notes:

(1) This amount includes payments to non-estate professionals and estate-retained professionals. Supporting detail for payments, if any, made to professionals is included in MOR 1-C

(2) Supporting detail by legal entity in MOR 1-B

(3) Second installation of DIP draw approved per court order on July 2nd. $24.2M remained in reserve account as of July 31st

(4) Includes $5.8M inflow from DIP Term Loan draw less $0.4M ABL paydown

(5) Conversion from CAD account (last 4 digits 3101)

 

 
 

 

In re: LIBBEY GLASS INC., et. al. 

Case No.

20-11439 (LSS)

          Debtors

Reporting Period:

July 2020

 

 

MOR-1a: Debtors' Statements With Respect To Bank Account Reconciliations And Bank Statements

 

Bank Account Reconciliations

The Debtors affirm that reconciliations for all open and active bank accounts are prepared monthly and maintained by the Debtors. Upon request, the Debtors will provide all bank reconciliations to the U.S. Trustee.

 

Bank Statements

The Debtors affirm that bank statements for all open and active bank accounts are maintained by the Debtors. Upon request, the Debtors will provide all bank statements to the U.S. Trustee.

 

 
 

 

In re: LIBBEY GLASS INC., et. al. 

Case No.

20-11439 (LSS)

          Debtors

Reporting Period:

July 2020
     

 

 

MOR-1b:  SCHEDULE OF DISBURSEMENTS BY LEGAL ENTITY
 

(US Dollars in Thousands)

 

Debtor Entity

  

Bankruptcy Case Number

    

Disbursements

  

LGA3 Corp.

   20-11456     $ -  

LGA4 Corp.

   20-11453       -  

LGAC LLC

   20-11450       -  

LGAU Corp.

   20-11455       12  

LGC Corp.

   20-11447       5  

LGFS Inc.

   20-11444       -  

Libbey Glass Inc.

   20-11439       23,841  

Libbey Inc.

   20-11440       -  

Libbey.com LLC

   20-11443       -  

Syracuse China Company

   20-11446       300  

The Drummond Glass Company

   20-11448       18  

World Tableware Inc.

   20-11451       3,331  

Total ⁽¹⁾

         $ 27,507  

 

Notes:   

(1) Reflects entity on whose behalf disbursements are made even if they come out of an account held by another Debtor

 

 
 

 

In re: LIBBEY GLASS INC., et. al. 

Case No.

20-11439 (LSS)

          Debtors

Reporting Period:

July 2020

 

 

MOR 1c: SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID

(US Dollars in Thousands)

 

 

    

June

    

July

    

Case-To-Date

 
PAYEE

Role in the case

  

Fees & Expenses

  

Loyens Loeff

Local Counsel for the Term Loan B

   $ (166 )   $ -     $ (166 )

Gomez-Acebo & Pombo

Local Counsel for the Term Loan Agent

     (26 )     (23 )     (49 )

Goldberg Kohn

Legal Counsel for the ABL

     -       (366 )     (366 )

Prime Clerk

Claims Agent

     -       (188 )     (188 )

Vieira de Almeida

Local Counsel for the ABL

     -       (99 )     (99 )

Creel Garcia-Cuellar Aiza y Enriquez S.C.

Local Counsel for the ABL

     -       (94 )     (94 )

NautaDutilh

Local Counsel for the ABL

     -       (66 )     (66 )

Vorys, Sater, Seymour and Pease LLP

Local Counsel for the ABL

     -       (62 )     (62 )

AlixPartners

Financial advisors for the ABL

     -       (49 )     (49 )

Womble Bond Dickinson LLP

Local Counsel for the ABL

     -       (23 )     (23 )

Mayer Brown

Local Counsel for the ABL

     -       (15 )     (15 )
                           

Total ⁽¹⁾

   $ (192 )   $ (984 )   $ (1,176 )

 

Notes:

(1) Reflects only payments made to Debtor and Lender advisors. MOR-1 Professional Fee line item reflects additional payments made to service providers supporting Libbey and classified as reorganization disbursements

 

 
 

 

In re: LIBBEY GLASS INC., et. al. 

Case No.

20-11439 (LSS)

          Debtors

Reporting Period:

July 2020

 

 

 

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

MOR-2

DEBTOR STATEMENT OF OPERATIONS

Month Ending July 31, 2020

(US Dollars in Thousands)

(Unaudited)

 

 

    LGA3 Corp.   LGA4 Corp.   LGAC LLC  

 

LGAU Corp.		   LGC Corp.   LGFS Inc.   Libbey Glass Inc.   Libbey Inc.   Libbey.com LLC  

Syracuse China

Company

  

The

Drummond

Glass Company

  

World

Tableware Inc.
                                                                                                 

Net sales

   $ -     $ -     $ -     $ -     $ -     $ -     $ 22,991     $ -     $ -     $ 217     $ 282     $ 3,413  

Freight billed to customers

     -       -       -       -       -       -       92       -       -       8       -       11  

Total revenues

     -       -       -       -       -       -       23,083       -       -       225       282       3,424  

Cost of sales

     -       -       -       -       -       -       (21,360 )     -       (1 )     (212 )     (306 )     (2,789 )

Gross profit (loss)

     -       -       -       -       -       -       1,723       -       (1 )     12       (24 )     635  

Selling, general and administrative expenses

     -       -       -       (12 )     (13 )     -       (3,703 )     -       -       (260 )     (2 )     (477 )

Operating income (loss)

     -       -       -       (12 )     (13 )     -       (1,980 )     -       (1 )     (248 )     (26 )     158  

Other Income / (Expense)

     -       -       -       -       -       -       21       -       -       22       -       -  

Gain (loss) before interest and income taxes

     -       -       -       (12 )     (13 )     -       (1,959 )     -       (1 )     (226 )     (26 )     158  
Interest income (expense)     -       -       -       -       -       -       (1,007 )     -       -       -       -       -  

Reorganization items, net

     -       -       -       -       -       -       (5,775 )     -       -       -       -       -  

Gain (loss) before income taxes

     -       -       -       (12 )     (13 )     -       (8,741 )     -       (1 )     (226 )     (26 )     158  

Provision (benefit) for income taxes

     -       -       -       (1 )     -       -       (32 )     -       -       -       -       -  

Net income (loss)

   $ -     $ -     $ -     $ (13 )   $ (13 )   $ -     $ (8,773 )   $ -     $ (1 )   $ (226 )   $ (26 )   $ 158  

 

 
 

 

In re: LIBBEY GLASS INC., et. al. 

Case No.

20-11439 (LSS)

          Debtors

Reporting Period:

 July 2020

 

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

MOR-3 Filing Date

Debtors Balance Sheet

July 31, 2020

(US Dollars in Thousands)

(Unaudited)

 

    LGA3 Corp.   LGA4 Corp.   LGAC LLC   LGAU Corp.   LGC Corp.   LGFS Inc.  

Libbey

Glass Inc.

   Libbey Inc.   Libbey.com LLC   Syracuse China Company   The Drummond Glass Company   World Tableware Inc.   Eliminations   Total

Current assets:

                                                                                                                

Cash and cash equivalents

   $ -     $ -     $ -     $ -     $ -     $ -     $ 37,805     $ -     $ -     $ -     $ 4     $ -     $ -     $ 37,809  

Accounts receivable — net

     -       -       -       -       13,303       202       49,015       63,605       263       38,969       737       39,426       (152,040 )     53,480  

Inventories — net

     -       -       -       -       -       -       62,171       -       -       6,556       170       19,552       -       88,448  

Prepaid and other current assets

     -       -       -       -       -       -       8,116       -       -       23       -       135       -       8,273  

Total current assets

     -       -       -       -       13,303       202       157,107       63,605       263       45,547       911       59,112       (152,040 )     188,010  
                                                                                                                 

Pension Asset

     -       -       -       -       -       -       6,927       -       -       -       -       -       -       6,927  

Purchased intangible assets — net

     -       -       -       -       -       -       540       -       -       800       -       1       (1 )     1,340  

Goodwill

     -       -       -       -       -       -       -       -       -       -       -       1       (1 )     -  

Other assets

     -       -       -       -       -       -       10,678       -       -       370       -       -       15       11,062  

Investments in subsidiaries

     187,582       (4,924 )     -       -       -       -       397,776       (8,974 )     -       -       -       -       (374,363 )     197,097  

Operating lease right-of-use assets

     -       -       -       -       -       -       29,005       -       -       -       -       -       -       29,005  

Property, plant and equipment — net

     -       -       -       -       -       -       89,014       -       -       -       41       84       -       89,139  

Total assets

   $ 187,582     $ (4,924 )   $ -     $ -     $ 13,303     $ 202     $ 691,046     $ 54,631     $ 263     $ 46,717     $ 952     $ 59,198     $ (526,390 )   $ 522,580  
                                                                                                                 

Current liabilities:

                                                                                                                

Notes payable

   $ -     $ -     $ -     $ -     $ -     $ -     $ 171,401     $ -     $ -     $ -     $ -     $ -     $ -     $ 171,401  

Accounts payable

     100       3       951       284       -       -       180,073       -       -       159       -       330       (152,040 )     29,860  

Salaries and wages

     -       -       -       (6 )     -       -       9,926       -       -       3       13       16       -       9,952  

Accrued liabilities

     -       -       -       -       -       -       17,998       -       -       1,131       27       1,652       126       20,934  

Accrued income taxes

     -       -       -       -       -       -       336       -       -       (45 )     -       (196 )     -       94  

Non-pension post-retirement benefits (current portion)

     -       -       -       -       -       -       383       -       -       151       -       -       -       534  

Operating lease liabilities (current portion)

     -       -       -       -       -       -       6,167       -       -       -       -       -       -       6,167  

Total current liabilities

     100       3       951       278       -       -       386,283       -       -       1,399       40       1,802       (151,914 )     238,941  
                                                                                                                 

Pension liability

     -       -       -       -       -       -       5,825       -       -       (65 )     -       -       -       5,760  

Non-pension post-retirement benefits

     -       -       -       -       -       -       6,304       -       -       678       -       -       -       6,983  

Noncurrent operating lease liabilities

     -       -       -       -       -       -       24,944       -       -       -       -       -       -       24,944  

Deferred income taxes

     -       -       -       -       -       -       (2,267 )     -       -       204       (1 )     114       1,950       -  

Other long-term liabilities

     -       -       -       -       -       -       3,969       -       -       -       -       -       (1,511 )     2,457  

Total liabilities not subject to compromise

     100       3       951       278       -       -       425,058       -       -       2,216       39       1,916       (151,475 )     279,085  
                                                                                                                 

Liabilities subject to compromise:

                                                                                                                

Accounts payable

     -       -       -       -       -       -       31,281       -       -       413       -       3,421       -       35,115  

Accrued liabilities

     -       -       -       -       -       -       2,304       -       -       -       -       -       -       2,304  

Non-pension post-retirement benefits

     -       -       -       -       -       -       40,007       -       -       -       -       -       -       40,007  

Pension liability

     -       -       -       -       -       -       164       -       -       -       -       -       -       164  

Long-term debt

     -       -       -       -       -       -       317,931       -       -       -       -       -       -       317,931  

Other long-term liabilities

     -       -       -       -       -       -       406       -       -       740       -       -       -       1,146  

Total liabilities subject to compromise

     -       -       -       -       -       -       392,093       -       -       1,153       -       3,421       -       396,667  

Total liabilities

     100       3       951       278       -       -       817,150       -       -       3,369       39       5,337       (151,475 )     675,752  
                                                                                                                 

Stockholders' equity:

                                                                                                                

Total stockholders' equity

     187,483       (4,927 )     (951 )     (278 )     13,303       202       (126,104 )     54,631       263       43,348       912       53,861       (374,915 )     (153,172 )

Total liabilities and stockholders' equity

   $ 187,582     $ (4,924 )   $ -     $ -     $ 13,303     $ 202     $ 691,046     $ 54,631     $ 263     $ 46,717     $ 952     $ 59,198     $ (526,390 )   $ 522,580  

 

 
 

 

In re: LIBBEY GLASS INC., et. al. 

Case No.

20-11439 (LSS)

          Debtors

Reporting Period:

July 2020

 

MOR-4:  SUMMARY OF UNPAID POST-PETITION DEBTS                    
(US Dollars in Thousands)

 

           

NUMBER OF DAYS PAST DUE

        

Debtor name

  

Current

       0-30       31-60    

61-90 ⁽¹⁾

    

Over 90 ⁽¹⁾

    

Total

  

Total Gross Accounts Payable ⁽²⁾

   $ 26,997     $ 619     $ 108     $ 63     $ 1,676     $ 29,463  

 

Notes:

(1) Past due related to pre-petition / post-petition split discrepancies with vendor. Company is in discussions with vendor related to ongoing contract discussions. Due dates are subject to change dependent upon the outcome of those discussions

(2) Variance from MOR-3 due to fully secured pre-petition trade payables (~$0.4M) and post-petition AP                    

 

 
 

 

In re: LIBBEY GLASS INC., et. al. 

Case No.

20-11439 (LSS)

          Debtors

Reporting Period:

July 2020

 

 

MOR 4a: DECLARATION REGARDING THE STATUS OF POST-PETITION TAXES

 

 

Juan Amezquita hereby declares under penalty of perjury:

 

 

1.

To the best of my knowledge and except as otherwise set forth in this Monthly Operating Report, all of the Debtors have filed all necessary federal, state and local tax returns and have timely made (or are in the process of remediating any immaterial late filings or payments) all related required post-petition tax payments.

 

 

Dated:  August 28, 2020

  

Respectfully submitted,
               
               
               
       

/s/ Juan Amezquita
       

By: Juan Amezquita
       

Title: Senior Vice President, Chief Financial Officer

 

 
 

 

In re: LIBBEY GLASS INC., et. al. 

Case No.

20-11439 (LSS)

          Debtors

Reporting Period:

July 2020

 

 

MOR-5: ACCOUNTS RECEIVABLE RECONCILIATION AND AGING 

(US Dollars in Thousands)

 

Accounts Receivable Reconciliation ⁽¹⁾

  

Amount

  

Total Accounts Receivable at the beginning of the reporting period, gross

   $ 52,065  

Plus: Amounts billed during the period ⁽²⁾

     28,901  

(Less): Amounts collected during the period

     (21,193 )

Total Accounts Receivable at the end of the reporting period, gross

   $ 59,773  

(Less): Reserves and Adjustments

     (6,294 )

Total Accounts Receivable at the end of the reporting period, net

   $ 53,480  

 

Accounts Receivable Aging ⁽¹⁾

  

Current

  

Current

   $ 5,722  

0-30 days

     21,475  

31-60 days

     10,252  

61-90 days

     2,327  

Over 90 days

     19,997  

Total Accounts Receivable at the end of the reporting period, gross

   $ 59,773  

 

DEBTOR QUESTIONNAIRE

 

Must be completed each month

 

 

 

Yes

No

1.  Have any assets been sold or transferred outside the normal course of business this reporting period?  If yes, provide an explanation below.

 

X

2.  Have any funds been disbursed from any account other than a debtor in possession account this reporting period?  If yes, provide an explanation below.

 

X

3.  Have all post petition tax returns been timely filed? If no, provide an explanation below.

X

 

4.  Are workers compensation, general liability and other necessary insurance coverages in effect?  If no, provide an explanation below.

X

 

5.  Has any bank account been opened during the reporting period?  If yes, provide documentation identifying the opened account(s).  If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.

 

X ⁽³⁾

 

Notes:

(1) Includes sales to intercompany non-debtor affiliates

(2) Includes deductions for credit memos and discounts

(3) DIP reserve account held by the Agent is part of the cash balance of the Debtors but is not an account opened by the estate.