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Exhibit 99.1

 

 

 

In re: LIBBEY GLASS INC., et. al. 

Case No.

20-11439 (LSS)

          Debtors

Reporting Period:

September 2020

     
     

Monthly Operating Report For the

Month Ended September 30, 2020

               
 

REQUIRED DOCUMENTS

Form No.

Document

Attached

Explanation

Attached

 

Schedule of Cash Receipts and Disbursements

MOR-1

X

 

       Bank Reconciliation (or copies of debtors' 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

 

October 30, 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: 

September 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 completion of the claims reconciliation process in conjunction with the Bankruptcy Court approval of the 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:

September 2020

 

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

MOR-1

CONSOLIDATED STATEMENT OF CASH FLOWS

For the Period of September 1, 2020 through September 30, 2020

(US Dollars in Thousands)

(Unaudited)

 

    CF Period of September 1, 2020 through September 30, 2020  

Receipts:

       

Total Receipts

  $ 32,970  
         

Disbursements:

       

Operating Disbursements - 3rd Party

    (27,146 )

Operating Disbursements - Non-Debtor Affiliate

    (6,579 )

Net Operating Cash Flow

    (756 )
         

Non-Operating Disbursements:

       

Professional Fees ⁽¹⁾

    (6,381 )

Interest Payments / Fees

    (2,301 )

Total Non-Operating Disbursements

    (8,681 )

Total Chapter 11 Items

    (130 )
         

Total Disbursements ²

    (42,537 )
         

Net Cash Flow

  $ (9,567 )
         

Cash Balance:

       

Beginning Cash Book Balance

  $ 30,195  

Net Cash Flow (excl. Draws/Paydowns)

    (9,567 )

Exchange Rate Gain/(Loss) ⁽³⁾

    (6 )

Difference in O/S Checks relative to G/L

    276  

Ending Cash Book Balance

  $ 20,899  

 

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) 

Conversion from CAD account (last 4 digits 3101)

 

 

 

In re: LIBBEY GLASS INC., et. al. 

Case No.

20-11439 (LSS)

          Debtors

Reporting Period:

September 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:

September 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       -  

LGC Corp.

  20-11447       5  

LGFS Inc.

  20-11444       -  

Libbey Glass Inc.

  20-11439       40,559  

Libbey Inc.

  20-11440       -  

Libbey.com LLC

  20-11443       1  

Syracuse China Company

  20-11446       249  

The Drummond Glass Company

  20-11448       70  

World Tableware Inc.

  20-11451       1,653  

Total ¹

        $ 42,537  

 

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:

September 2020

 

 

MOR 1c: SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID

(US Dollars in Thousands)

 

    June July August Septemember Case-To-Date
PAYEE Role in the case Fees & Expenses

Loyens Loeff

Local Counsel for the Term Loan B

  $ (166 )   $ -     $ (5 )   $ -     $ (171 )

Gomez-Acebo & Pombo

Local Counsel for the Term Loan Agent

    (26 )     (23 )     -       -       (49 )

Goldberg Kohn

Legal Counsel for the ABL

    -       (366 )     -       (73 )     (438 )

Prime Clerk

Claims Agent

    -       (188 )     (223 )     (221 )     (632 )

Vieira de Almeida

Local Counsel for the ABL

    -       (99 )     -       (7 )     (106 )

Creel Garcia-Cuellar Aiza y Enriquez S.C.

Local Counsel for the ABL

    -       (94 )     -       (16 )     (110 )

NautaDutilh

Local Counsel for the ABL

    -       (66 )     -       -       (66 )

Vorys, Sater, Seymour and Pease LLP

Local Counsel for the ABL

    -       (62 )     -       (5 )     (67 )

AlixPartners

Financial advisors for the ABL

    -       (49 )     -       (55 )     (105 )

Womble Bond Dickinson LLP

Local Counsel for the ABL

    -       (23 )     -       (3 )     (26 )

Mayer Brown

Local Counsel for the ABL

    -       (15 )     -       (2 )     (17 )

Latham & Watkins

Counsel for the Debtors

    -       -       (1,300 )     (781 )     (2,081 )

Arnold & Porter Kaye Schooler LLP

Counsel for the Term Loan B

    -       -       (853 )     (549 )     (1,401 )

Ankura Consulting Group

Financial advisors for the Term Loan B

    -       -       (199 )     (695 )     (894 )

EC Legal Mexico, S.C.

Local Counsel for the Term Loan B

    -       -       (61 )     -       (61 )

Young Conaway Stargatt & Taylor, LLP

Local Counsel for the Term Loan B

    -       -       (28 )     (15 )     (43 )

Stephenson Harwood

Local Counsel for the Term Loan B

    -       -       (5 )     -       (5 )

Alvarez & Marsal North America, LLC

Financial advisors for the Debtors

    -       -       -       (1,648 )     (1,648 )

Lazard Freres & Co

Financial advisors for the Debtors

    -       -       -       (1,200 )     (1,200 )

Richards Layton & Finger

Counsel for the Debtors

    -       -       -       (359 )     (359 )

Brown Rudnick LLP

Counsel for the UCC

    -       -       -       (285 )     (285 )

Greenhill & Co., LLC

Financial advisors for the UCC

    -       -       -       (172 )     (172 )

Littler Mendelson, P.C.

Employment Counsel for the Debtors

    -       -       -       (158 )     (158 )

Stout Risius Ross, Inc.

Fresh start valuation services for the Debtor

    -       -       -       (50 )     (50 )

Total ¹

  $ (192 )   $ (984 )   $ (2,673 )   $ (6,294 )   $ (10,143 )

 

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:

September 2020

 

 

 

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

MOR-2

DEBTOR STATEMENT OF OPERATIONS

Month Ended September 30, 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

  $ -     $ -     $ -     $ -     $ -     $ -     $ 30,855     $ -     $ -     $ 612     $ 274     $ 2,872  

Freight billed to customers

    -       -       -       -       -       -       49       -       -       13       -       12  

Total revenues

    -       -       -       -       -       -       30,904       -       -       625       274       2,884  

Cost of sales

    -       -       -       -       -       -       (25,167 )     -       (1 )     (293 )     (120 )     (2,374 )

Gross profit (loss)

    -       -       -       -       -       -       5,736       -       (1 )     331       154       511  

Selling, general and administrative expenses

    -       -       -       29       9       -       (4,847 )     -       -       (172 )     (5 )     (387 )

Asset Impairments

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

Operating income (loss)

    -       -       -       29       9       -       888       -       (1 )     160       149       124  

Other Income / (Expense)

    -       -       -       -       -       -       38       -       -       26       -       1  

Gain (loss) before interest and income taxes

    -       -       -       29       9       -       926       -       (1 )     186       149       124  

Interest income (expense)

    -       -       -       -       -       -       (1,042 )     -       -       -       -       -  

Reorganization items, net

    -       -       -       -       -       -       (4,909 )     -       -       -       -       -  

Gain (loss) before income taxes

    -       -       -       29       9       -       (5,025 )     -       (1 )     186       149       124  

Provision (benefit) for income taxes

    -       -       -       -       -       -       (108 )     -       -       -       -       -  

Net income (loss)

  $ -     $ -     $ -     $ 29     $ 9     $ -     $ (5,133 )   $ -     $ (1 )   $ 186     $ 149     $ 124  

 

 

 

In re: LIBBEY GLASS INC., et. al. 

Case No.

20-11439 (LSS)

          Debtors

Reporting Period:

September 2020

 

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

MOR-3 Filing Date

Debtors Balance Sheet

September 30, 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

  $ -     $ -     $ -     $ -     $ -     $ -     $ 20,889     $ -     $ -     $ -     $ 10     $ -     $ -     $ 20,899  

Accounts receivable — net

    -       -       -       -       13,303       202       60,891       63,870       261       38,922       884       38,868       (151,948 )     65,253  

Inventories — net

    -       -       -       -       -       -       63,328       -       -       6,231       250       17,297       -       87,107  

Prepaid and other current assets

    -       -       -       -       -       -       6,998       -       -       22       -       119       -       7,140  

Total current assets

    -       -       -       -       13,303       202       152,107       63,870       261       45,176       1,144       56,284       (151,948 )     180,399  
                                                                                                                 

Pension Asset

    -       -       -       -       -       -       7,534       -       -       -       -       -       -       7,534  

Purchased intangible assets — net

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

Goodwill

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

Other assets

    -       -       -       -       -       -       10,916       -       -       370       -       -       15       11,301  

Investments in subsidiaries

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

Operating lease right-of-use assets

    -       -       -       -       -       -       28,554       -       -       -       -       -       -       28,554  

Property, plant and equipment — net

    -       -       -       -       -       -       85,873       -       -       -       39       82       -       85,994  

Total assets

  $ 187,582     $ (4,924 )   $ -     $ -     $ 13,303     $ 202     $ 683,300     $ 54,897     $ 261     $ 46,345     $ 1,182     $ 56,368     $ (526,298 )   $ 512,218  
                                                                                                                 

Current liabilities:

                                                                                                               

Notes payable

  $ -     $ -     $ -     $ -     $ -     $ -     $ 171,172     $ -     $ -     $ -     $ -     $ -     $ -     $ 171,172  

Accounts payable

    100       3       951       267       -       -       186,553       -       -       10       -       461       (151,948 )     36,396  

Salaries and wages

    -       -       -       (6 )     -       -       10,085       -       -       7       16       19       -       10,120  

Accrued liabilities

    -       -       -       -       -       -       16,816       -       -       1,041       28       1,675       126       19,687  

Accrued income taxes

    -       -       -       -       -       -       319       -       -       (45 )     -       (203 )     -       71  

Non-pension post-retirement benefits (current portion)

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

Operating lease liabilities (current portion)

    -       -       -       -       -       -       6,279       -       -       -       -       -       -       6,279  

Total current liabilities

    100       3       951       261       -       -       391,606       -       -       1,165       44       1,952       (151,822 )     244,259  
                                                                                                                 

Pension liability

    -       -       -       -       -       -       5,464       -       -       -       -       -       -       5,464  

Non-pension post-retirement benefits

    -       -       -       -       -       -       6,036       -       -       661       -       -       -       6,696  

Noncurrent operating lease liabilities

    -       -       -       -       -       -       24,317       -       -       -       -       -       -       24,317  

Deferred income taxes

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

Other long-term liabilities

    -       -       -       -       -       -       3,986       -       -       -       -       -       (1,511 )     2,474  

Total liabilities not subject to compromise

    100       3       951       261       -       -       429,141       -       -       2,029       43       2,066       (151,383 )     283,211  
                                                                                                                 

Liabilities subject to compromise:

                                                                                                               

Accounts payable

    -       -       -       -       -       -       28,163       -       -       27       -       243       -       28,433  

Accrued liabilities

    -       -       -       -       -       -       1,854       -       -       -       -       -       -       1,854  

Non-pension post-retirement benefits

    -       -       -       -       -       -       40,027       -       -       -       -       -       -       40,027  

Pension liability

    -       -       -       -       -       -       165       -       -       -       -       -       -       165  

Long-term debt

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

Other long-term liabilities

    -       -       -       -       -       -       416       -       -       740       -       -       -       1,156  

Total liabilities subject to compromise

    -       -       -       -       -       -       388,556       -       -       767       -       243       -       389,566  

Total liabilities

    100       3       951       261       -       -       817,697       -       -       2,796       43       2,308       (151,383 )     672,776  
                                                                                                                 

Stockholders' equity:

                                                                                                               

Total stockholders' equity

    187,483       (4,927 )     (951 )     (261 )     13,303       202       (134,397 )     54,897       261       43,549       1,139       54,060       (374,915 )     (160,558 )

Total liabilities and stockholders' equity

  $ 187,582     $ (4,924 )   $ -     $ -     $ 13,303     $ 202     $ 683,300     $ 54,897     $ 261     $ 46,345     $ 1,182     $ 56,368     $ (526,298 )   $ 512,218  

 

 

 

In re: LIBBEY GLASS INC., et. al. 

Case No.

20-11439 (LSS)

          Debtors

Reporting Period:

September 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

  $ 31,756     $ 1,866     $ 444     $ 548     $ 1,782     $ 36,396  

 

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

 

 

 

In re: LIBBEY GLASS INC., et. al. 

Case No.

20-11439 (LSS)

          Debtors

Reporting Period:

September 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:  October 30, 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:

September 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

  $ 69,264  

Plus: Amounts billed during the period ⁽²⁾

    39,097  

(Less): Amounts collected during the period ⁽²⁾

    (36,737 )

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

  $ 71,624  

(Less): Reserves and Adjustments

    (6,370 )

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

  $ 65,253  

 

Accounts Receivable Aging ¹

 

Current

 

Current

  $ 7,572  

0-30 days

    28,935  

31-60 days

    10,275  

61-90 days

    5,397  

Over 90 days

    19,445  

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

  $ 71,624  

 

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⁽³⁾

 

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

 

Notes:

(1) Includes sales to intercompany non-debtor affiliates

(2) Includes deductions for credit memos and discounts

(3) Debtor transferred fixed assets with minimal net book value from a closing debtor facility to a non-debtor affiliate facility