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