The announcement had been expected since Morris faced the nearly impossible task of persuading nearly all its creditors to agree to a debt exchange offer of $100 million in new debt for $278.5 million in existing debt.
But Morris had already won support for its plan from creditors holding more than 75% of its notes.
The increasingly popular "prepackaged" route through bankruptcy court is generally a quicker and less expensive approach than a typical contested Chapter 11 filing.
Under its reorganization plan, Morris needed the approval of the debt exchange offer from holders of 99% of its existing notes by Jan. 12 to avoid a bankruptcy filing. Morris said it did not meet that requirement and had terminated the offer.