Anchor Glass Container Corporation has won approval from the United States Bankruptcy Court Middle District of Florida Tampa Division to submit its proposed Plan of Reorganization and Disclosure State…
Anchor Glass Container Corporation has won approval from the United States Bankruptcy Court Middle District of Florida Tampa Division to submit its proposed Plan of Reorganization and Disclosure Statement to the vote, the firm said 1 March 2006. Anchor“s Plan of Reorganization will reduce the company“s long term debt by approximately USD 370 million. A confirmation hearing has been set for 17 April 2006. Assuming court approval of the plan, Anchor expects to emerge from Chapter 11 in late April 2006. “This plan of reorganization is an important milestone for us. With the support of our customers, vendors and employees we have the framework in place to enable Anchor Glass to remain a strong and innovative competitor in the marketplace”, said Mark Burgess, Anchor“s Chief Executive Officer. The Ad Hoc Committee of Noteholders and the Official Committee of Unsecured Creditors have advised Anchor Glass that they will recommend the acceptance of this plan. The terms of Anchor“s Plan of Reorganization call for a debt-for-equity swap that will give Anchor“s Senior Secured Noteholders 100% of the company“s equity. Anchor will leave Chapter 11 as a privately held company with long-term debt of USD 135 million. To ensure strong liquidity, Anchor intends to put in place a revolving credit facility of approximately USD 65 million. Unsecured creditors will receive a cash distribution of approximately USD 8.6 million. Based upon current estimates, unsecured claims approximate USD 120 million. Current equity holders will receive no distribution and their shares will be cancelled.