Headlines

Caraustar Reduces Debt Obligation by $135 Million (8/25/09)

August 25, 2009
/ Print / Reprints /
ShareMore
/ Text Size+
Caraustar Industries Inc. has emerged from Chapter 11 as a newly reorganized private company, eliminating approximately $135 million in debt. 

Caraustar Industries Inc. recently announced that it has emerged from Chapter 11 as a newly reorganized private company, eliminating approximately $135 million in debt. 

Michael J. Keough, president and CEO, said, “We are gratified that the company has been able to expeditiously implement its plan of reorganization with minimal business disruption and in record time. As a result, Caraustar emerges with a strong, stable platform from which to operate, invest and grow our business.  This is a tremendous accomplishment.”  

Under the plan, shares of the company’s common stock will be retired and previous shareholders will receive a pro rata share of $2.9 million. The company’s 7⅜ percent and 7¼ percent senior notes have been exchanged for an aggregate of $85 million in new senior secured notes and 100% of the common stock of the reorganized company.   

Caraustar has closed on a new $75 million revolving credit facility with General Electric Capital Corp., which provides Caraustar with more than adequate liquidity to meet all of its working capital needs, including any future capital investments. The company has made no borrowings against the new facility.

The company has been very active in rationalizing its portfolio by exiting under-performing businesses, right-sizing operations through consolidation of facilities and reducing selling, general, and administrative expenses. Restructuring the company’s balance sheet through the exchange of debt for equity complements that effort. 

For more information, visit: www.caraustar.com.

Did you enjoy this article? Click here to subscribe to Adhesives & Sealants Industry Magazine.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

In-Depth Features

These articles detail advantages and innovations for multiple end uses.

Podcasts

ExxonMobil Tackifier Expansion

Dwight Tozer, vice president of ExxonMobil’s Adhesion Industry business, discusses the company’s latest tackifier expansion project with Editor-in-Chief Susan Sutton.

More Podcasts

THE MAGAZINE

Adhesives & Sealants Industry Magazine

ASI April 2014 cover

2014 April

Our April issue focuses on pressure-sensitive adhesives, including a preview of PSTC's 2014 Tape Summit, as well as converting/packaging and composites!

Table Of Contents Subscribe

THE ADHESIVES STORE

handbook-sealant-tech.gif
Handbook of Sealant Technology

The Handbook of Sealant Technology provides an in-depth examination of sealants, reviewing their historical developments and fundamentals, adhesion theories and properties, and today’s wide range of applications.

More Products

asi1211p_Cover-DE.gifASI's Buyers' Guide

Annual purchasing resource for equipment used in the manufacture/formulation of adhesives, sealants, pressure sensitives, tapes and labels and for application of finished adhesives. 

Clear Seas Research

With access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

STAY CONNECTED

facebook_40px twitter_40  youtube_40pxlinkedin_40