Pyxus International, Inc. Receives Overwhelming Support of Creditors for Prepackaged Plan of Reorganization

MORRISVILLE, N.C., July 22, 2020 /PRNewswire/ -- Pyxus International, Inc. ("Pyxus" or "the Company") (OTC Pink: PYXSQ), a global value-added agricultural company, announced today that on July 20, 2020, the Prepackaged Plan of Reorganization of Pyxus International, Inc. and its Affiliated Debtors (the "Prepackaged Plan") was overwhelmingly approved by each class of creditors entitled to vote. Of those that submitted ballots, holders of 100% of first lien notes (holding over $266 million of principal) and over 99% of the second lien notes (holding over $524 million of principal) voted in favor of the Prepackaged Plan.

In addition, on July 22, 2020, the Bankruptcy Court presiding over the Company's Chapter 11 cases approved the Company's entry into a commitment letter for a $75 million revolving credit facility to be provided by Sound Point Capital upon the effective date of the Prepackaged Plan, subject to satisfaction or waiver of certain conditions.

"The level of support from our first lien and second lien noteholders in favor of the Prepackaged Plan, and the commitment from Sound Point to finance the company's go-forward working capital needs, reflects their collective confidence in our proposed restructuring transaction and future business strategy," said Pieter Sikkel, Pyxus' President and CEO. "The Company looks forward to working with its creditors and its other constituents to complete its restructuring process and emerge from the Chapter 11 in the near term."

The hearing to consider approval of the Prepackaged Plan is scheduled for August 18, 2020 at 9:30 a.m. ET.

About Pyxus International, Inc.
Pyxus International, Inc. (OTC Pink: PYXSQ) is a global agricultural company with more than 145 years of experience delivering value-added products and services to businesses, customers and consumers. Driven by a united purpose—to transform people's lives, so that together we can grow a better world—Pyxus International, its subsidiaries and affiliates, are trusted providers of responsibly sourced, independently verified, sustainable and traceable agricultural and consumer-driven products and ingredients. For more information, visit www.pyxus.com.

Cautionary Statement Regarding Forward-Looking Statements
This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations of future events. Such statements include, but are not limited to, statements about future financial and operating results, plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based on the current beliefs and expectations of management and are subject to significant risks and uncertainties. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results may differ materially from those currently anticipated expected or projected. The following factors, among others, could cause actual results to differ from those expressed or implied by the forward-looking statements: risks and uncertainties relating to the Company's Chapter 11 cases, including its ability to obtain Bankruptcy Court approval with respect to motions in the Chapter 11 cases and confirmation by the Bankruptcy Court of the Prepackaged Plan, the effects of the Chapter 11 cases on the Company and its various constituents, the impact of Bankruptcy Court rulings in the Chapter 11 cases, including the appointment of an Equity Committee and delays in the scheduling of the hearing with respect to the confirmation of the Prepackaged Plan, the ultimate outcome of the Chapter 11 cases in general, the length of time the Company will operate under the Chapter 11 cases, attendant risks associated with restrictions on the Company's ability to pursue its business strategies, risks associated with third-party motions in the Chapter 11 cases, the potential adverse effects of the Chapter 11 cases on the Company's liquidity, the likelihood of cancellation of the Company's common stock in the Chapter 11 cases, uncertainty regarding the Company's ability to retain key personnel, whether leaf tobacco customers, farmers and other suppliers might lose confidence in the Company's ability to reorganize its business successfully and may seek to establish alternative commercial relationships, whether, as a result of the Chapter 11 cases, foreign lenders that have provided short-term operating credit lines to fund leaf tobacco operations at the local level may lose confidence in the Company and cease to provide such funding, and uncertainty and continuing risks associated with the Company's ability to achieve its goals and continue as a going concern, the impact of the COVID-19 pandemic, changes in the timing of anticipated shipments, changes in anticipated geographic product sourcing, developments in relevant capital markets affecting the terms and availability of financing, political instability, currency and interest rate fluctuations, shifts in the global supply and demand position for tobacco products, changes in tax laws and regulations or the interpretation of tax laws and regulations, resolution of tax matters, adverse weather conditions, the impact of disasters, pandemics or other unusual events affecting international commerce, changes in costs incurred in supplying products and related services, uncertainties with respect to the impact of regulation associated with consumer products business lines, including the risk of obtaining anticipated regulatory approvals in Canada and for e-liquids products in the United States, uncertainties regarding the regulation of the production and distribution of legal cannabis and industrial hemp products and continued compliance with applicable regulatory requirements, uncertainties with respect to the development of the industries and markets of the consumer products business lines, consumer acceptance of products offered by the consumer products business lines, uncertainties with respect to the timing and extent of retail and product-line expansion, the impact of increasing competition in the consumer products business lines, uncertainties regarding obtaining financing to fund planned facilities expansions, the possibility of delays in the completion of facilities expansions and uncertainties regarding the potential production yields of new or expanded facilities, as well as the progress of legalization of cannabis for medicinal and adult recreational uses in other jurisdictions. Additional factors with respect to risks and uncertainties with respect to an investment in the common stock of Pyxus International, Inc. can be found in its Annual Report on Form 10-K for the period ended March 31, 2019, its Quarterly Reports on Form 10-Q for the periods ended June 30, 2019, September 30, 2019 and December 31, 2019 and its other filings with the Securities and Exchange Commission (the "SEC") which are available at the SEC's Internet site (http://www.sec.gov). Pyxus does not undertake to update any forward-looking statements made in this press release to reflect any change in management's expectations or any change in the assumptions or circumstances on which such statements are based, except as required by law.

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SOURCE Pyxus International, Inc.