Introduction
Pretium Packaging, L.L.C. and nine affiliates filed a prepackaged Chapter 11 case on January 28, 2026, in the U.S. Bankruptcy Court for the District of New Jersey. The lead case is 26-10896-CMG, before Judge Christine M. Gravelle.
The goal was to cut debt fast. Pretium said the transaction would reduce funded debt by more than $900 million and add over $175 million of liquidity. At filing, funded debt stood at approximately $1,835.8 million, per the debtor's CFO declaration.
The case moved quickly. This article covers why Pretium filed, how the plan treats each creditor class, what "business as usual" means for suppliers, the case timeline, and what to monitor on the docket.
Key Takeaways
- Pretium filed a prepackaged Chapter 11 on Jan. 28, 2026 (Case 26-10896-CMG, D.N.J.).
- The plan was confirmed Feb. 23 and went effective Mar. 2, 2026.
- Clearlake invested $50 million in new equity; DIP commitments reached up to $533.5 million.
- Operations continued throughout, but prepetition claims followed court orders, not blanket payment.
- Verify every figure against the docket.
What Happened in the Pretium Packaging Chapter 11 Filing?
Pretium designs and produces rigid and sustainable packaging for specialized applications. Its CFO declaration described 24 manufacturing facilities across the U.S., Canada, Mexico, Ireland, and the Netherlands. The company is owned by private-equity sponsor Clearlake Capital.
Filing details
- Petition date: January 28, 2026
- Court: U.S. Bankruptcy Court, District of New Jersey
- Debtors: Pretium Packaging, L.L.C. plus nine affiliates, including Alpha Consolidated Holdings, Olcott Plastics, Pretium Canada Packaging, and Poseidon Parent (which has separate case no. 26-10902)
- Excluded: Entities in Mexico, Ireland, and the Netherlands were not part of the U.S. process
What the filings do and don't show
The $1,835.8 million figure is funded debt, not total liabilities. Total assets, total liabilities, and petition-date cash are not confirmed in the primary filings, so treat any secondary-source figure for those with caution.
The prepack structure
Pretium says it signed a restructuring support agreement on December 30, 2025, and began soliciting votes on January 25, three days before filing. The company reported support from roughly 90% of secured lenders. Because votes were gathered in advance, the case needed court confirmation, not months of negotiation.
Financing at the start of the case
Stretto reported commitments for up to $533.5 million in DIP financing. The plan defines $451 million of DIP term loans plus a possible liquidity-shortfall amount capped at $82.5 million. That is a maximum commitment, not proof of full drawing.
The CFO declaration also described rolling the existing ABL into a $100 million DIP ABL facility. Don't add it to the term-loan maximum without checking the facility documents.
The sequence matters:
- Requested at filing
- Interim approval on January 30
- Final order on February 18
Why Pretium Packaging Filed and How the Restructuring Works
The debtor's stated reasons
These are the company's explanations in its first-day declaration, not independent court findings:
- Post-pandemic demand normalization and customer destocking after earlier over-ordering
- Lower order volumes and plant utilization
- Inflation and supply-chain challenges
- Higher interest expense on floating-rate debt
- Difficulties integrating Alpha
The declaration also cited a Q4 2025 ratings downgrade, customer order pauses, and growing supplier and customer concern. Pretium said it could not operate normally or fund the cases without new money.
An earlier fix that didn't hold
In October 2023, Pretium completed a liability-management transaction that raised $325 million of first-lien Tranche A loans, with 99.8% of legacy first-lien holders participating. Roughly two years later, the company was back in distress. The debtor's account implies that the 2023 deal bought time but didn't resolve the capital structure.
Treatment by class (confirmed plan)
| Class | Treatment |
|---|---|
| First-lien Tranche A-1 (Class 4) | Impaired, voted to accept; 72.5% of new equity (subject to dilution), plus takeback/exit term loan treatment |
| Second-lien (Class 5) | Impaired, voted to accept; $5,784,220.72 aggregate cash, pro rata, plus 5.6% of new equity (subject to MIP dilution) |
| New-money investors | 21.9% of new equity (subject to MIP dilution); Clearlake identified as the $50 million investor |
| General unsecured (Class 6) | Unimpaired; the debtor described payment in full in cash or reinstatement |
| Existing equity (Class 9) | Canceled; no recovery |
The plan also sets a minimum-liquidity condition: $100 million of cash on the reorganized debtors' consolidated balance sheet after the effective date. That is a condition, not a reported cash balance.
What DIP money does
DIP financing funds payroll, vendor payments, operations, and professional fees while the case runs. The January 30 interim order authorized postpetition financing, cash collateral use, and related liens.
What Pretium's Business and Stakeholders Need to Know
Pretium's products serve specialized end markets, and it promotes sustainable packaging offerings. "Business as usual" means plants keep running and customers keep getting product. It does not mean every old invoice gets paid.
Practical implications
- Suppliers: A January 30 interim order authorized payment of trade claims in the ordinary course with administrative-expense priority. That is not a finding that every invoice, or any disputed claim, was paid in full.
- Employees: An interim order authorized certain prepetition wages, compensation, and reimbursable expenses.
- Customers: The first-day motion sought authority to maintain customer programs. Treat that as requested relief and confirm on the docket whether a final order was entered.
- Critical vendors: A separate critical-vendor order is not readily available on the public docket. Confirm current status there.
Statutory rights to know
- Goods received within 20 days: Section 503(b)(9) gives administrative-expense treatment to qualifying goods, depending on the facts.
- Reclamation: Section 546(c) has a 45-day notice window, subject to conditions and prior security interests.
- Executory contracts: Assumption generally requires cure and adequate assurance; rejection generally constitutes a breach.
This is a statutory overview, not legal advice. Supplier rights depend on the specific claim and order.
Case Timeline, Court Details, and Key Professionals
| Date | Event |
|---|---|
| Dec. 30, 2025 | Restructuring support agreement signed (per debtor) |
| Jan. 25, 2026 | Plan solicitation began |
| Jan. 28, 2026 | Petition date |
| Jan. 30, 2026 | Interim DIP and first-day orders |
| Feb. 18, 2026 | Final DIP order |
| Feb. 23, 2026 | Plan confirmed |
| Mar. 2, 2026 | Effective date |
| Mar. 3, 2026 | Pretium announced completion |
| Mar. 20 / June 16, 2026 | Final decrees for certain affiliate cases / Poseidon Parent wind-down case |
Petition to confirmation took 26 calendar days; petition to effective date took 33. Those are case-specific intervals, not benchmarks.
Professionals
- Debtor: Kirkland & Ellis (counsel), Cole Schotz (proposed co-counsel), Evercore (investment banker), FTI Consulting (financial advisor)
- Ad hoc term-loan group: Moelis and Milbank
- Wells Fargo: Morgan Lewis and Berkeley Research Group
Claims, notices, and the docket are on the official Stretto case portal, with a docket mirror at CourtListener. Cross-check key facts against the first-day declaration, DIP orders, confirmation order, and plan filings.
What Creditors, Suppliers, and Investors Should Watch Next
The plan is confirmed and effective, so attention shifts to post-emergence mechanics and residual filings.
- Claims deadlines: No bar date is readily available in current notices. Check the claims page for filings. A bar date is the last day creditors may file claims.
- Contract decisions: Watch for assumption or rejection notices and cure amounts.
- Remaining orders: Final decrees and wind-down activity, such as the Poseidon Parent case.
- Capital structure: New equity splits, exit term loan terms, and dilution from the management incentive plan.
- Risks: Company-reported results, such as the $900 million debt cut, are announcements. They don't give you an exact post-emergence debt or cash balance.
For ongoing visibility, BankruptcyData tracks first-day motions, DIP financing, cash collateral, plan filings, stakeholders, and outcomes in one platform. Professionals who follow cases like this can use it alongside the official docket.
Frequently Asked Questions
When did Pretium Packaging file for Chapter 11?
January 28, 2026, in the U.S. Bankruptcy Court for the District of New Jersey, Case 26-10896-CMG. Ten debtor entities filed; check the docket for later developments.
Why did Pretium Packaging file for bankruptcy?
The company cited demand normalization, customer destocking, inflation, higher floating-rate interest costs, and liquidity pressure on a debt-heavy structure. These are debtor statements, not independent findings.
What does the restructuring plan include?
It was expected to cut funded debt by over $900 million, add over $175 million of liquidity, and bring a $50 million Clearlake equity investment. The court confirmed it February 23, 2026.
Did Pretium continue operating during Chapter 11?
Yes. Operations continued, supported by DIP financing. Payment of prepetition claims depended on court orders, not automatic full payment.
What is a prepackaged Chapter 11?
The company and key creditors agree on a plan and solicit votes before filing. That shortens the case, but the court must still approve it.
What should creditors and suppliers monitor?
The official docket, claims notices, trade-claim orders, contract assumption or rejection notices, and plan documents.
