Shares of Tupperware Brands Corporation soared as much as 90% during the after-bell trade as the global consumer products company announced on Thursday that it has finalised an agreement with its lenders to restructure its debt obligations extending the maturity of certain debt facilities to allow it to continue with its turnaround efforts.

This agreement will aid in comprehensively restructuring and reallocating the company’s debt. It is also expected to reduce amortisation payments required through fiscal year 2025 by about $55 million.

The agreement will help reduce or reallocate about $150 million of cash interest and fees, giving it immediate access to a revolving borrowing capacity of approximately $21 million.

The agreement also includes the extension of the maturity of about $348 million of principal and reallocated interest and fees to 2027 with payment-in-kind (PIK) interest.

Shares of Tupperware closed at $3.52 on the New York Stock Exchange. When the company announced the agreement after the closing bell, the stock soared as much as 90.5% to reach $6.99 per share. The scrip is up 363% in the past month but is still down 13.5% yearly. 

Tupperware has recently seen a sharp drop in demand as consumers limit discretionary purchases amid higher prices and fears of recession. The company reported $705.4 million in total debt for 2022.

The company, known for its plastic airtight storage containers and bowls, had recently raised concerns about its ability to continue operations after failing to grow its business for about three years. This led to a nearly 50% drop in its share price in a single day. 

The sudden and humongous fluctuations in the price of the company’s shares replicate that seen in other financially challenged companies like Bed Bath & Beyond and Gamestop. These are also known as “meme” stocks.

Tupperware signed Moelis & Co as its financial advisor in May to explore strategic options for its survival. The investment bank found additional misstatements in its financial reporting. Its advisors on the debt restructuring agreement also include Kirkland & Ellis LLP as legal counsel and Alvarez & Marsal as restructuring advisors.