Anchor Glass files for bankruptcy

Anchor Glass Container Corp., manufacturer of glass beverage containers, has filed for bankruptcy protection.The reorganization plan was filed Monday in the U.S.

Bankruptcy Court for the Middle District of Florida, Tampa Division, which must approve any plan.

Under a deal worked out with its creditors in a so-called "pre-packaged" bankruptcy, the Tampa-based company will erase about $50 million of debt.

"The action allows Anchor Glass to re-capitalize and provides us with a more stable financial base for the future," president and chief operating officer Richard M. Deneau said in a statement.

Anchor Glass said reorganization was partially necessary because its Canadian parent company, Consumers Packaging, Inc., defaulted on $75 million in bonds last year.

Anchor also blamed an overleveraged balance sheet, constant short-term liquidity complaints and an underfunded pension, which will require about $177 million over the next four years.

Under terms of the reorganization, Anchor Glass has signed agreements with bondholders, who will receive $50 million in cash, and a majority of holders of its Series A preferred stock, who will receive cash payments of $22.5 million.

All Series B preferred stock and common stock will be cancelled, meaning it is worthless.

Anchor Glass had 2001 revenues of $702 million. It employs 2,900 at 12 U.S. locations.

600450 Anchor Glass files for bankruptcy glassonweb.com

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