Leading US films manufacturer Pliant Corp (Schaumburg, Illinois; www.pliantcorp.com) filed for Chapter 11 insolvency protection in the US and Canada in early January to gain time for corporate restructuring. The company, once a part of the Huntsman group (Salt Lake City, Utah / USA; www.huntsman.com), said it will fulfil all current financial obligations, with support from GE Commercial Finance. Production at its 24 sites will continue uninterrupted. Foreign subsidiaries in Mexico, Australia and Germany are unaffected by the proceedings.

In particular, the sharp rise in costs for PE, PVC and PP in the wake of hurricane Rita in the second half of 2005 is said to have caused liquidity problems, while more restrictive supply conditions increased the pressure on operations. In December 2005, Pliant management drew up a plan to restructure financing, which would allow the company to reduce its debt by up to USD 578m and annual interest expense by up to USD 84m. This will now be carried out under Chapter 11.

Worldwide, Pliant employs more than 3,000 people, with the bulk of the workforce concentrated in the US and Canada. Its last reported annual sales of USD 900m make the company one of the largest US films manufacturers, alongside Bemis and Tyco Plastics. According to reports, investment bank J.P. Morgan, current majority shareholder of Pliant, initially considered buying Tyco´s film business and integrating it into the Illinois films manufacturer, founded in 2000, when Huntsman founder Jon Huntsman sold the packaging business to free up funds for a charitable foundation.