Following the failed auction on 29 August 2005 of Glass Group Inc. assets, Judge Peter Walsh gave the Millville, New Jersey-based company another chance at a sell-off on Thursday 8 September 2005.
Th…
Following the failed auction on 29 August 2005 of Glass Group Inc. assets, Judge Peter Walsh gave the Millville, New Jersey-based company another chance at a sell-off on Thursday 8 September 2005. The new auction was signed off following a hearing 31 August 2005 in US Bankruptcy Court in Wilmington, Delaware. The same day, the judge approved an extension of the company“s USD 40 million debtor-in-possession loan. According to court papers, Glass Group“s senior lender, CapitalSource Finance LLC, agreed to extend the maturity date on the loan to 19 September 2005, giving the firm more time to find a buyer for its assets. Under the amended DIP loan, Glass Group will pay a default interest rate of prime plus 8.5%. On 30 August 2005, CapitalSource sought court approval to convert the privately held glassmaker“s Chapter 11 case to Chapter 7. That would result in the closing of the business and the liquidation of assets. Despite four offers for the Glass Group assets, CapitalSource sought liquidation because none of the bids were high enough to pay off the USD 38 million loan. Glass Group, formerly Wheaton Glass Co., makes molded glass containers for the pharmaceutical, cosmetic and distribution sectors. The company employs more than 1,400 full-time workers at plants in New Jersey and Missouri. Glass Group filed for bankruptcy protection on 28 February 2005 listing debts of USD 69.2 million.