Bankruptcy

Caraustar Industries And Related Companies File Chapter 11 Petitions In Northern District

By Scott Riddle

Caraustar Industries, one of the nation's largest manufacturers of recycled paperboard and related products, and related entities, filed Chapter 11 petitions in the Northern District of Georgia yesterday.

From the Atlanta Business Chronicle:

Caraustar (NASDAQ: CSAR) also reached agreement with debt holders to reduce the company's debt obligations by $135 million.

Under the Plan, holders of outstanding shares of Caraustar's common stock will receive their pro rata share of $2.9 million, or 10 cents a share, subject to certain conditions. The restructuring plan calls for the exchange of the company's existing 7.375 percent and 7.25 percent senior notes for an aggregate of $85 million in new senior secured notes and 100 percent of the common stock of the reorganized company.

Wayzata Investment Partners LLC will become the company's controlling shareholder.

In conjunction with the restructuring, Caraustar has landed a $75 million debtor-in-possession line of credit from General Electric Capital Corp. The money may be used for cash collateralizing outstanding letters of credit, paying for goods and services in the ordinary course of the business and general corporate purposes.

The debtor entities are:

 

 

Type
09-73830-mgd Caraustar Industries, Inc.	associated
09-73835-mgd Austell Holding Company, LLC	associated
09-73836-mgd Camden Paperboard Corporation	associated
09-73837-mgd Caraustar Custom Packaging Group, Inc.	associated
09-73839-mgd Caraustar Custom Packaging Group (Maryland), Inc.	associated
09-73840-mgd Caraustar, G.P.	associated
09-73841-mgd Caraustar Industrial and Consumer Products Group,	associated
09-73843-mgd Caraustar Mill Group, Inc.	associated
09-73844-mgd Caraustar Recovered Fiber Group, Inc.	associated
09-73845-mgd Chicago Paperboard Corporation	associated
09-73846-mgd Federal Transport, Inc.	associated
09-73847-mgd Gypsum MGC, Inc.	associated
09-73848-mgd Halifax Paper Board Company, Inc.	associated
09-73849-mgd McQueeney Gypsum Company	associated
09-73850-mgd Paragon Plastics, Inc.	associated
09-73851-mgd PBL Inc.	associated
09-73853-mgd McQueeney Gypsum Company, LLC	associated
09-73854-mgd Sprague Paperboard, Inc.	associated
09-73855-mgd RECCMG, LLC	associated

Full post as published by Georgia Bankruptcy Blog on June 02, 2009 (boomark / email).