Missouri-based packaging company Pretium Packaging LLC filed for Chapter 11 in a New Jersey bankruptcy court, with a prepackaged plan of reorganization aimed at reducing the company's funded debt by more than $900 million.

In a petition filed late Wednesday, the debtor's Chief Financial Officer J. Federico Barreto said the company and its nine affiliates are holding between $1 billion and $10 billion in both assets and liabilities.

The company has approximately $1.836 billion in outstanding funded debt as of the petition date, according to Barreto's first-day declaration filed Thursday.

The company said in a statement Wednesday it has reached an agreement with its existing lenders and equity sponsor, Clearlake Capital Group LP, to pursue the prepackaged restructuring transaction.

Over the past several months, Pretium worked with Clearlake Capital and an ad hoc group of lenders on the restructuring support agreement, ultimately entering into the agreement Dec. 30.

The transaction is expected to reduce the company's funded debt by more than $900 million, provide over $175 million of liquidity, and secure new debt and equity financing, including more than $530 million of new near-term debt commitments from existing lenders, a $50 million new equity investment from Clearlake and a $100 million exit asset-based lending facility upon emergence from Chapter 11.

General unsecured creditors are expected to be paid in full or have their claims reinstated.

The company began soliciting votes on its prepackaged plan on Jan. 25 and has already secured the support of approximately 90% of its secured lenders, including its asset-based lender Wells Fargo.

"Under our new, significantly de-leveraged capital structure, we are creating more flexibility to invest in our products, our people, and our customers. 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," James Rooney, CEO of Pretium Packaging, said in the statement.

According to a first-day declaration filed by Barreto, Pretium Packaging has encountered substantial challenges in recent years, as post-pandemic normalization in customer demand across the industry resulted in weaker order volumes and reduced manufacturing utilization. The headwinds were exacerbated by high inflation, supply chain constraints and additional operational hurdles, Barreto said.

The debtor has up to 10,000 creditors. Its largest unsecured creditors include Polymers Sales & Logistic, which holds approximately $2.8 million in trade claims, and Equistar Chemicals LP, which is owed about $1.8 million, also in trade claims, according to the petition.

Founded in 1992 and headquartered in St. Louis, Pretium Packaging is a leading manufacturer of rigid packaging products, including plastic bottles, jars, closures, trays and other containers, according to the declaration. As of the petition date, the company operates 24 manufacturing facilities across the United States, Canada, Mexico, Ireland and the Netherlands, and employs approximately 3,100 workers worldwide.

The case has been assigned to U.S. Bankruptcy Judge Christine M. Gravelle.

A representative of the debtor didn't immediately respond to a request for comment on Thursday.

The debtor is represented by Michael D. Sirota, Warren A. Usatine and Felice R. Yudkin of Cole Schotz PC, and Steven N. Serajeddini, Jordan E. Elkin, Anup Sathy and Yusuf Salloum of Kirkland & Ellis LLP.

The case is In re: Pretium Packaging LLC, case number 3:26-bk-10896, in the U.S. Bankruptcy Court for the District of New Jersey.