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Anchor Glass Secures $125 Million Loan
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Anchor Glass Container Corp., which makes glass bottles for Anheuser Busch and other companies, agreed to borrow $125 million from a group of noteholders to repay secured debt and cover operating expenses while it reorganizes in bankruptcy.
The noteholders are owed $350 million in 11 percent notes due in 2013, Anchor Glass said in papers filed with the U.S. Bankruptcy Court, Middle District of Florida. The financing requires court approval.
Anchor Glass proposes using the loan to repay $63.5 million owed to Wachovia under a 2002 loan and $15.4 million owed to Madeleine LLC under a February agreement. The noteholder loan also would replace a current $115 million financing agreement Anchor has with Wachovia.
``The company does not have sufficient ... working capital to operate its businesses without the financing requested,'' said Anchor Glass attorney Rob Soriano.
The financing can close as soon as Sept. 15 and will expire in one year, Anchor Glass said in court papers.
Anchor Glass, the nation's third-largest maker of glass containers, filed for Chapter 11 bankruptcy protection Aug. 8, three days after saying it was restating results from 2001 to 2003 because of improper accounting. It was the company's third bankruptcy filing since 1996.
Anchor Glass shares closed Friday at 15 cents, up 1 1/2 cents in over-the-counter trading.
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August 29th, 2005
Source: News.tbo.com |
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