Current Anchor Glass stockholders to get nothing

Anchor Glass Container Corp. has received approval from the U.S. Bankruptcy Court to submit for voting its proposed plan of reorganization and disclosure statement.

Anchor's plan of reorganization will reduce the company's long-term debt by approximately $370 million.

The terms of Anchor's plan of reorganization call for a debt-for-equity swap that will give Anchor's senior secured noteholders 100 percent of the company's equity. Anchor will exit Chapter 11 as a privately held company with long-term debt of $135 million.

Current equity holders will receive no distribution and their shares will be cancelled.

Anchor Glass entered Chapter 11 in August 2005. It hasn't filed timely financial reports since its first quarter 10-Q from last May.

A confirmation hearing has been set for April 17.

To ensure strong liquidity, Anchor intends to put in place a revolving credit facility of approximately $65 million, a release said. Unsecured creditors will receive a cash distribution of approximately $8.6 million. Based upon current estimates, unsecured claims approximate $120 million.

Anchor Glass (PINK SHEETS: AGCCQ), headquartered in Tampa, is the third largest manufacturer of glass containers in the United States.

It closed its Pittburgh-area facility, a bottle plant in South Connellsville, Fayette County, in November 2004, putting 300 out of work.

Anchor Glass has eight plants where it produces a diverse line of flint (clear), amber, green and other colored glass containers for the beer, beverage, food, liquor and flavored alcoholic beverage markets.

600450 Current Anchor Glass stockholders to get nothing
Date: 3 March 2006

See more news about:

Others also read

In March 2016 HORN has signed a complete new project contract with Turira for Mina Glass Co about engineering and equipment for a new 240 tpd regenerative end fired furnace with 3 forehearths.
We kindly inform you that Tiama will present during Glassman Middle-East on the 10th of May at 3PM its Tiama HOT lab system dedicated to hot-end measurements of containers dimensions.
Bucher Emhart Glass, the leading global supplier of machinery and equipment to the glass manufacturing industry, has announced the retirement of Ed Munz, Vice President Logistics & Manufacturing (VP L&M), and the appointment of his successor, Juan Pablo Montes.
Orora Limited (ASX:ORA) announces it has committed to invest $42 million in additional glass bottle forming lines at its Gawler, South Australia, glass plant.
Thai Glass Industries (TGI), container glass manufacturing subsidiary of Berli Jucker in Thailand, and XPAR Vision from the Netherlands, join forces in a strategic partnership, providing leading Hot End sensor technology to the global container glass industry.
2016 marks Quantum’s 40th year of serving the global glass container industry and we are proud to announce that we can celebrate this important milestone with our new partner, Interglass.

Add new comment