Item 1.01 Entry into a Material Definitive Agreement
On
A copy of the Credit Agreement was filed as exhibit 4.2 to Libbey's Current
Report on Form 8-K filed with the
Item 8.01 Other Events
The
As previously reported, we have experienced significant disruptions to our
business and operations due to circumstances related to COVID-19. In particular,
COVID-19 has caused displacement of our staff in order to comply with "stay at
home" orders, which has limited our access to facilities and certain technology
systems that we rely upon to timely prepare our quarterly reports. In addition,
the disruptions to our business caused by COVID-19 have resulted in a
significant diversion of resources to attend to the operational needs of the
business. As a result, we will require additional time to prepare and finalize
our Quarterly Report on Form 10-Q for the quarter ended
We are supplementing our Risk Factors previously disclosed in the Company's
Annual Report on Form 10-K for the fiscal year ended
The COVID-19 pandemic has materially adversely affected, and will continue to materially adversely affect, our business, financial condition, liquidity and results of operations.
The coronavirus disease 2019 ("COVID-19") pandemic has resulted in a widespread
health crisis that has adversely affected businesses, economies and financial
markets worldwide and has caused significant volatility in
Our business, financial condition, liquidity and operating results have been, and will continue to be, adversely affected by the COVID-19 pandemic. For example, the COVID-19 pandemic has caused a widespread increase in unemployment and is expected to result in reduced consumer spending and economic slowdown or recession. Substantially all our revenue is generated from sales of our products into the foodservice, hospitality and retail industries, and our business, as well as that of our customers, is negatively affected during times of lower consumer discretionary spending and high unemployment.
COVID-19, and measures taken by governments and organizations to contain its effects, have already caused, and will likely continue to cause, disruption to our operations, supply chain and the business and operations of the industries we serve. Such disruption may continue or increase in the future, and limits the ability of our manufacturing facilities, distribution facilities, partners, vendors and customers to operate efficiently or at all and could result in further reduced sales and profitability.
Our customers are vulnerable to reduced foodservice and hospitality industry patronage as well as periods of economic slowdown or recession and increased unemployment. Furthermore, many restaurants, hotels and other hospitality providers have temporarily or permanently closed and more may close in the near future in light of the COVID-19 pandemic.
In response to the COVID-19 pandemic, we have temporarily reduced or suspended
our manufacturing and distribution operations at several of our facilities in
To the extent the COVID-19 pandemic adversely affects our business and financial
results, it may also have the effect of heightening many of the other risks
described in Item 1A, "Risk Factors" of our annual report on Form 10-K for the
year ended
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Cautionary Note on Forward-Looking Statements
This Current Report on Form 8-K includes forward-looking statements as defined
in Section 27A of the Securities Act and Section 21E of the Securities Exchange
Act of 1934, as amended. Such statements reflect only the Company's best
assessment at this time and are indicated by words or phrases such as "goal,"
"plan," "expects," " believes," "will," "estimates," "anticipates," or similar
phrases. These forward-looking statements include all matters that are not
historical facts. They include statements regarding the Company's intentions,
beliefs or current expectations concerning, among other things, the impact of
COVID-19 on our operations and the length of time of such impact, our results of
operations, financial condition, liquidity, prospects, growth, strategies and
the impact of COVID-19 on the industry in which we operate and the industries we
serve. By their nature, forward-looking statements involve risks and
uncertainties because they related to events and depend on circumstances that
may or may not occur in the future. Investors are cautioned that forward-looking
statements are not guarantees of future performance and that our actual results
of operations, financial condition and liquidity, and the development of the
industry in which we operate, may differ materially from these statements.
Investors should not place undue reliance on such statements. Important factors
potentially affecting performance include but are not limited to risks and
uncertainties related to the impact of COVID-19 on the global economy, our
associates, our customers and our operations, our high level of indebtedness and
the availability and cost of credit; high interest rates that increase the
Company's borrowing costs or volatility in the financial markets that could
constrain liquidity and credit availability; the inability to achieve savings
and profit improvements at targeted levels in the Company's operations or within
the intended time periods; increased competition from foreign suppliers
endeavoring to sell glass tableware, ceramic dinnerware and metalware in our
core markets; global economic conditions and the related impact on consumer
spending levels; major slowdowns or changes in trends in the retail, travel,
restaurant and bar or entertainment industries, and in the retail and
foodservice channels of distribution generally, that impact demand for our
products; inability to meet the demand for new products; material restructuring
charges related to involuntary employee terminations, facility sales or
closures, or other various restructuring activities; significant increases in
per-unit costs for natural gas, electricity, freight, corrugated packaging, and
other purchased materials; our ability to borrow under our ABL credit agreement;
protracted work stoppages related to collective bargaining agreements; increased
pension expense associated with lower returns on pension investments and
increased pension obligations; increased tax expense resulting from changes to
tax laws, regulations and evolving interpretations thereof; devaluations and
other major currency fluctuations relative to the
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