Caraustar Industries Inc. has announced that the Bankruptcy Court for the Northern District of Georgia (the “Court’) granted final authorization for the company to borrow all amounts available under its $75 million debtor-in-possession credit facility (the “DIP Facility”) from General Electric Capital Corp., pursuant to the terms and conditions of the DIP Facility Agreement, and to use the amounts borrowed under the DIP Facility to fund working capital and other general corporate needs.
“The Court approval
gives Caraustar and its stakeholders additional financial flexibility to
continue to do what we do best, run safe manufacturing operations and service
customers. The approval of the DIP Facility also supports our efforts to emerge
as a financially stronger company. We are committed to the
long-term profitability of the company and remain steadfast in providing our
customers with innovative products and excellent service,” stated Michael J.
Keough, president and CEO of Caraustar.
The company and its
domestic subsidiaries filed voluntary Chapter 11 petitions along with a
pre-negotiated Plan of Reorganization in the United States Bankruptcy Court for
the Northern District of Georgia on May 31, 2009.