SCHAUMBURG, Ill. (AP) -- Pliant Corp., a privately held maker of flexible plastic packaging and film, said Wednesday it filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court of Delaware.
The company's "pre-negotiated" financial restructuring plan will "eliminate all of its high-yield debt or $674 million of long-term bonds," it said in a statement. Pliant said it arranged access to $75 million in interim financing.
The company doesn't intend to file for bankruptcy for its European, Latin American or Australian operations.
Pliant, which has hired the law firms of Sidley Austin LLP and Young Conaway Stargatt & Taylor LLP, said it also will cut costs and consolidate plants.
"We have also been burdened by a significant amount of debt which has limited our ability to advance our company at the pace we want," Chief Executive Harold Bevis said in a statement released by the company.
"This restructuring will allow us to significantly improve our financial position and allow us to continue to be a leading provider of innovative, value-added film and flexible packaging products."
Pliant filed for bankruptcy protection in January 2006, at which time Bevis cited the soaring cost of raw materials and shortages caused by Hurricane Katrina. At that time, the company had been considering bankruptcy as it watched debt swell to about $1.15 billion versus $950 million in annual revenue.
Pliant emerged from bankruptcy in July 2006.