Anchor Glass files pre-negotiated plan of reorganization

Anchor Glass Container Corp. filed a prenegotiated reorganization plan designed to erase about $50 million of debt, and said all Series B preferred stock and common shares will be canceled.Anchor Glass expects to pay secured creditors and all trade vendors 100% of amounts owed.

The company also expects to elect a new board of directors.

In a press release Monday, the maker of glass beverage containers said its secured bondholders will retain $150 million of their first mortgage notes outstanding, plus a consent fee for the change-of-control provisions waiver and other nonfinancial changes to the notes' terms.

Anchor Glass signed lock-up and support agreements with a majority of its unsecured bondholders, who will receive $50 million in cash. The company also signed lockup and support agreements with a majority of its Series A preferred stock holders, who will receive cash $22.5 million in cash.

The reorganization filing was prompted by liquidity issues raised by change of control provisions in the company's debt instruments.

The prenegotiated elements of the reorganization provide for no disruption to the company's employees, creditors, customers and overall operations.

In March, Anchor Glass arranged for new funding through a prearranged Chapter 11 bankruptcy filing.Cerberus Capital Management agreed to put $100 million of new capital into Anchor Glass, including $80 million in the form of equity capital.

600450 Anchor Glass files pre-negotiated plan of reorganization glassonweb.com

See more news about:

Others also read

British Glass CEO Dave Dalton enjoyed a successful trip to America earlier this month to promote cutting edge research and development taking place in the UK.
Quality, superior performance, customer-oriented solutions and automation are the key features of the products showcased at Glasstec.
Heraeus Precious Metals opens the world’s most advanced precious metals factory in Nanjing, China, less than two years after breaking ground.
Lattimer is going to exhibit at this year’s 25th edition of the Glasstec International Trade Fair for Glass in Düsseldorf.
North America’s largest glass company to showcase proven, innovative products and technologies.
Glass is a popular and indispensable packaging material for food and beverages of all kinds. Current product trends and innovations in production will be presented by manufacturers at glasstec 2018 in Düsseldorf from 23 to 26 October 2018.

Add new comment