Constar International Inc. Receives Court Approval on “First Day” Motions in Its Reorganization Filing
06 Janvier 2009 - 3:07AM
Business Wire
Constar International Inc. (NASDAQ: CNST) announced the approval of
its operational �first day� motions by the U.S. Bankruptcy Court
for the District of Delaware (the �Bankruptcy Court�) on December
31, 2008. The Company received, among other things, interim
Bankruptcy Court approval of its $75 million debtor-in-possession
(DIP) financing. The DIP financing includes the option for the
Company to convert it into a three-year exit financing facility,
subject to satisfying certain conditions. The DIP and exit
financing are being provided by the Company�s existing bank
lenders. Constar will use the interim DIP financing and cash
generated from its operations to continue to pay vendors and to
provide operational and financial stability as it proceeds with its
restructuring. The final DIP hearing is scheduled for January 20,
2009. The Company also announced that it received Bankruptcy Court
approval to, among other things, pay pre-petition employee wages,
health benefits and other employee obligations during its
restructuring under Chapter 11. Additionally, the Company is
authorized to pay its ordinary course of business post-petition
expenses and to continue to honor all of its current customer
contracts without seeking further Bankruptcy Court approval. �With
the prompt approval of our DIP and exit financing and first day
motions, we are moving forward while maintaining normal
operations,� said Michael Hoffman, President and Chief Executive
Officer of Constar. �Throughout this process, we will continue to
operate our business without interruption, including paying
employee wages and purchasing the goods and services necessary to
provide our customers with high quality PET containers and
dependable service.� Constar and its subsidiaries filed to
reorganize under Chapter 11 on December 30, 2008, in the U.S.
Bankruptcy Court for the District of Delaware. The case number for
the consolidated cases is 08-13432. Additional information about
Constar�s restructuring is available on the Company�s web site,
www.constar.net. For access to Bankruptcy Court documents and other
general information about the Chapter 11 reorganization cases,
please visit http://chapter11.epiqsystems.com/constar. Cautionary
Note Regarding Forward-Looking Statements Except for historical
information, all information in this news release consists of
forward-looking statements within the meaning of the federal
securities laws, including statements regarding the intent, belief
or current expectations of the Company and its management which are
made with words such as �will,� �expect,� �believe,� and similar
words. These forward-looking statements involve a number of risks,
uncertainties and other factors, which may cause the actual results
to be materially different from those expressed or implied in the
forward-looking statements. Important factors that could cause the
actual results of operations or financial condition of the company
to differ from expectations include: (i) the Company�s ability to
continue as a going concern; (ii) the ability of the Company to
operate pursuant to the terms of any debtor-in- possession credit
facility; (iii) the Company�s ability to obtain court approval with
respect to motions in the Chapter 11 proceeding; (iv) the ability
of the Company to develop, confirm and consummate one or more plans
of reorganization with respect to the Chapter 11 proceeding; (v)
risks associated with third parties seeking and obtaining court
approval to terminate or shorten the exclusivity period for the
Company to propose and confirm one or more plans of reorganization,
for the appointment of a Chapter 11 trustee or to convert the cases
to Chapter 7 cases; (vi) the ability of the Company to obtain and
maintain normal terms with vendors and service providers; (vii) the
Company�s ability to maintain contracts that are critical to its
operations; (viii) the potential adverse impact of the Chapter 11
cases on the Company�s liquidity or results of operations; (ix) the
ability of the Company to fund and execute its business plan;(x)
the ability of the Company to attract, motivate and/or retain key
executives and employees; and (xi) other risks and factors
regarding the Company identified from time to time in the Company�s
reports filed with the SEC, including the risk factors identified
in its Annual Report on Form 10-K for the year ended December 31,
2007, and in subsequent filings made prior to, on or after today.
The Company does not intend to review, revise, or update any
particular forward-looking statements in light of future events.
About Constar Philadelphia-based Constar is a leading global
producer of PET (polyethylene terephthalate) plastic containers for
food, soft drinks and water. The Company provides full-service
packaging solutions, from product design and engineering, to
ongoing customer support. Its customers include many of the world's
leading branded consumer products companies.
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