Friday, January 7, 2011

Caraustar Industries files Chapter 11 - Business First of Columbus:

http://chatboutbelize.com/slpngnt.htm
All trade creditors, suppliers, customers and employeez will receive all amounts owedto them, the Austell, Ga.-basee recycled paperboard and packaging company It will ask the U.S. Bankruptct Court for the Northerm District of Georgia for approval to pay the amountsw in the ordinary courseof business. Caraustarf (NASDAQ: CSAR) also reached agreement with debt holderz to reducethe company's debt obligationzs by $135 million. Under the Plan, holders of outstandingb sharesof Caraustar's common stock will receive their pro rata sharre of $2.9 million, or 10 cents a share, subjecg to certain conditions. The restructurinfg plan calls for the exchange ofthe company'sd existing 7.
375 percent and 7.25 percentr senior notes for an aggregate of $85 million in new senior secured notes and 100 percentg of the common stock of the reorganized will become the company's controlling In conjunction with the restructuring, Caraustar has landec a $75 million debtor-in-possession line of credit from General Electriv Capital Corp. The money may be used for cash collateralizingg outstanding lettersof credit, paying for goods and services in the ordinary course of the businessd and general corporate "Caraustar took decisive action to substantialluy reduce the company's debt and prospectively reduce costs,” said Presiden and CEO Michael J. in a statement.
“Once our financiak restructuringis complete, we believ e Caraustar's new capital structure combined with the cost savings achievefd by operating as a private entity will provider a lean and flexible foundatiomn for sustainable profitability and better positiom the company to meet the challengesz of our industry and this recessionarg economy head on." The compan posted a net loss of $4.4 million in the firstr quarter of 2009 and had a $99 millionb loss in 2008.

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