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, 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: 6 March 2006

See more news about:

Others also read

Our conclusion after four trade fair days: today nothing is left from the massive redundancies the glass industry suffered from in the last two years.
A leading lubricant manufacturer has announced a new brand name for its glass lubricants range.
With Heraeus Inkjet Gold, smooth glass surfaces, such as tiles or perfume bottles, can be decorated with real gold by digital printing.
On 19th July 2016 HORN Glass Technology (Beijing) Co. Ltd. held its second technology Seminar in the hotel Shangri-La in China.  
AMETEK Land has unveiled a new innovation for the glass industry: an enhanced thermal imaging Near Infrared Borescope (NIR-B) designed specifically for the use in glass-melt tanks, with an optional auto-retract version for additional instrument protection.  
Last week HORN Glass Industries AG held a very informative seminar in China for all our customers of the glass industry about a variety of very interesting subjects such as the founding of the company, NOx reduction measures and control equipment, forehearths, melting furnaces, etc.

From industry

Add new comment