Caraustar Industries Inc.
has announced that the Bankruptcy Court for the Northern District of Georgia
has approved the company’s first-day motions to pay pre-petition general
unsecured claims in the ordinary course of business in connection with its
voluntary restructuring under Chapter 11.
previously announced, Caraustar reached agreement with holders of approximately
83 percent of its 7⅜% Senior Notes maturing June 1, 2009, and 91 percent of its
7¼% Senior Notes maturing May 1, 2010 on the terms of a cooperative financial
restructuring that would reduce the company’s debt obligations by approximately
The court also granted
permission for the company to pay pre-petition employee wages and salaries, to
make contributions to the 401(k) and other employee benefit plans, and to
reimburse employees for their pre-petition business expenses.
“Having received approval of our first-day
motions so quickly sets Caraustar on strong footing as we move towards completing
our recapitalization,” said Caraustar President and Chief Executive Officer
Michael J. Keough. “This action by the Court will be well received by our
employees, customers and suppliers.”
For more information, visit www.caraustar.com