Pretium Packaging: $900M Prepackaged Restructuring

Pretium Packaging, L.L.C. and nine affiliated debtors — including Poseidon Parent, L.P. — entered chapter 11 in the U.S. Bankruptcy Court for the District of New Jersey (Trenton) on January 28, 2026 under lead case 26-10896 (CMG), arriving with a fully solicited prepackaged plan and the support of their secured lenders and equity sponsor. The St. Louis-based rigid plastic packaging maker used the case to execute a balance-sheet restructuring rather than an operational wind-down, reducing funded debt by more than $900 million while leaving trade and other general unsecured claims unimpaired.

The prepackaged posture compressed the timeline to weeks: Judge Christine M. Gravelle confirmed the plan on February 23, 2026, 26 days after the filing, and the plan went effective on March 2, 2026. Poseidon Parent, L.P. (Case No. 26-10902), the top holding entity in the corporate stack, was designated the Wind-Down Debtor under the confirmed plan while the operating entities continued as Reorganized Debtors. The transaction transferred control of the reorganized business to the first-lien lender group, with Clearlake Capital Group retaining a minority position.

Debtor(s)	Pretium Packaging, L.L.C. (10 jointly administered entities; Poseidon Parent, L.P. is the Wind-Down Debtor)
Court	U.S. Bankruptcy Court, District of New Jersey (Trenton)
Lead Case Number	26-10896
Petition Date	January 28, 2026
Confirmation Date	February 23, 2026
Effective Date	March 2, 2026
Judge	Hon. Christine M. Gravelle
Plan Type	Joint prepackaged plan of reorganization
DIP Facility	Super-senior multi-draw DIP term loan (approximately $533.5 million) plus a super-priority DIP ABL revolver rolling up prepetition ABL obligations

Clearlake Ownership and the 2023 Liability Management Deal

Pretium Packaging manufactures rigid plastic bottles and containers from a St. Louis headquarters. The company is owned by Clearlake Capital Group, the private equity firm that has held the business through a period of escalating leverage. The chapter 11 followed years of struggling with a heavy debt load rather than a sudden operational failure, and the debtors continued operating in the ordinary course throughout the case.

The 2026 prepack was not the company's first attempt to manage that leverage. In October 2023, Pretium completed an out-of-court liability management transaction in which consenting first-lien lenders provided new first-out term loans and exchanged existing term loans for new second-out term loans under an amendment to the existing first-lien credit agreement. That exchange, which closed October 17, 2023 under Clearlake ownership, layered the capital structure into first-out and second-out tranches that shaped the eventual chapter 11 treatment. Clearlake's broader approach to distressed lender dynamics — including a lender protection list barring roughly 100 firms from buying into its portfolio companies' debt — drew market attention in the period preceding the filing.

Prepetition Capital Structure and the UBS-Agented Term Loans

The prepetition funded debt rested on three credit facilities, all originally dated October 1, 2021. The asset-based revolver ran under an ABL Credit Agreement with Wells Fargo Bank, National Association, as administrative and collateral agent, amended through December 30, 2025. The funded term debt sat in two layers, both agented by UBS AG, Stamford Branch: a First Lien Credit Agreement (amended through November 19, 2025) that included the First Lien Tranche A-1 Term Loans, and a Second Lien Credit Agreement of the same vintage carrying the Second Lien Term Loans.

The first-lien layer was the dominant claim in the structure. The holders of the First Lien A-1 term loans held roughly $1.3 billion of debt going into the case, the position that ultimately equitized into majority ownership of the reorganized company. Investment bank Moelis & Company, which advised an ad hoc group of first- and second-lien lenders, characterized the overall transaction as a $1.8 billion restructuring, reflecting the full scale of the funded debt addressed through the prepack. Against that base, the plan deleveraged approximately $900 million of obligations.

DIP Financing and the $533.5 Million Term Loan

The debtors entered the case with two debtor-in-possession facilities authorized by the boards in the voluntary petition resolutions: a super-senior secured multi-draw DIP term loan and a super-priority DIP ABL revolver that rolled up the prepetition ABL obligations. The DIP financing ran alongside consensual use of cash collateral.

The DIP term loan carried lender economics typical of a sponsor-backed prepack. The $533.5 million DIP term loan priced at SOFR plus 525 basis points, with a 10% commitment fee and an 11.5% backstop fee, both payable in equity rather than cash. The pre-filing lender agreement that underpinned this financing was reported in the days before the petition, when Clearlake and the lender group clinched a deal to restructure the debt and committed to provide exit facilities and new money. The company framed the package as one that would supply more than $175 million in liquidity to support continued operations.

Prepackaged Plan and Lender Equitization

The joint prepackaged plan was solicited before the petition and was accepted by the funded-debt classes that voted, with the impaired voting classes comprising the first-lien and second-lien claims (Classes 4 and 5). The plan converted the bulk of the funded debt into equity and new exit debt. The First Lien A-1 holders received approximately $500 million in new exit debt plus 72.5% of the reorganized equity, while the second-lien holders took $5.7 million in cash and 5.6% of the equity. Clearlake contributed $50 million of new money in exchange for 21.9% of the post-emergence equity, preserving a minority sponsor stake.

General unsecured creditors were left outside the impairment. Trade and other general unsecured claims rode through unimpaired and paid in full, a structure that kept the company's supplier and customer relationships intact through emergence. The pre-filing restructuring support agreement governing these terms had been reported as the lenders signed a pact ahead of the filing, locking in the equitization and new-money framework.

Judge Gravelle confirmed the plan on February 23, 2026 over an objection from an opt-out creditor, and the plan reached its effective date on March 2, 2026. The company announced completion of the transaction as a capital structure optimization, and the St. Louis Business Journal reported the exit from bankruptcy with the $900 million reduction complete.

Professional Fees and Evercore's Restructuring Fee

The court entered the order approving final fee applications on April 29, 2026, following a hearing the prior day. Approved compensation totaled roughly $15.1 million in fees across the engaged professionals.

Professional	Role	Fees	Expenses
Kirkland & Ellis LLP / K&E International LLP	Co-counsel to the debtors	$2,216,861.50	$49,060.37
Cole Schotz P.C.	Co-counsel (New Jersey)	$106,536.00	$675.80
Evercore Group L.L.C.	Investment banker	$11,826,354.72	$52,177.00
FTI Consulting, Inc.	Financial advisor	$965,222.50	$2,376.00
KPMG LLP	Tax advisor	$17,920.18	$0.00
Stretto, Inc.	Administrative advisor	$11,049.80	—

Evercore's compensation dominated the fee record. Its final fee application was anchored by an $11 million restructuring fee, a $200,000 monthly advisory fee, and a financing fee calculated at 1.0% of the first-lien/first-out (including DIP) commitments, which produced an additional $4,105,418.87 — a figure that itself indicates the scale of the new first-out and DIP debt raised. Kirkland & Ellis had sought $2,261,861.50 in fees but the court approved $2,216,861.50, a $45,000 reduction. Cole Schotz served as New Jersey co-counsel, FTI Consulting as financial advisor, and KPMG as tax advisor, with Stretto handling claims and noticing administration.

Poseidon Parent as Wind-Down Debtor and Case Closeout

On emergence, the operating entities continued as Reorganized Debtors, new directors were appointed to the board of Poseidon Investment Intermediate, and initial distributions to creditors commenced on the effective date. The plan designated Poseidon Parent, L.P. — the top-of-stack holding entity at Case No. 26-10902 — as the Wind-Down Debtor responsible for resolving residual estate matters separate from the going-concern business.

The post-confirmation phase moved quickly toward closure. The reorganized group filed its first post-confirmation report covering the first quarter of 2026 at the end of April, and the Wind-Down Debtor filed a motion for a final decree on May 21, 2026, with a hearing scheduled for June 16, 2026. Entry of a final decree would close the Poseidon Parent case and conclude administration of the wind-down estate.

Key Timeline

Date	Event
October 17, 2023	Out-of-court liability management transaction closes (first-out/second-out exchange)
January 26, 2026	Lender deal supporting the restructuring reported
January 28, 2026	Chapter 11 petitions filed (D.N.J., Trenton); joint administration sought; Judge Gravelle assigned
February 23, 2026	Disclosure statement approved and plan confirmed (26 days after filing)
March 2, 2026	Plan effective date; Reorganized Debtors emerge; distributions commence
April 28, 2026	Hearing on final fee applications
April 29, 2026	Order approving professional fee applications entered
April 30, 2026	First-quarter 2026 post-confirmation reports filed
May 21, 2026	Wind-Down Debtor files motion for final decree (hearing set June 16, 2026)

Frequently Asked Questions

Who is the claims agent for Pretium Packaging and Poseidon Parent?

Stretto, Inc. serves as the claims and noticing agent, retained as the debtors' administrative advisor. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.

What did the prepackaged plan do to the company's debt?

The plan reduced funded debt by approximately $900 million, converting first-lien claims into roughly $500 million of new exit debt plus 72.5% of the reorganized equity, paying second-lien holders $5.7 million in cash and 5.6% equity, and admitting a $50 million new-money contribution from Clearlake for 21.9% of the equity. General unsecured claims were left unimpaired.

When did Pretium Packaging emerge from chapter 11?

The plan was confirmed on February 23, 2026 and went effective on March 2, 2026, returning the operating entities to normal-course business as Reorganized Debtors while Poseidon Parent, L.P. continued as the Wind-Down Debtor.

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