facebook
twitter
rss
account
search
search
 

Constar International files for Chapter 11

Dec. 31, 2008 at 2:54 PM   |   Comments

PHILADELPHIA, Dec. 31 (UPI) -- Pennsylvania plastic container company Constar International Inc. said it filed for Chapter 11 bankruptcy protection to implement a debt-for-equity swap.

The swap will reduce the company's indebtedness by $175 million and annual interest expenses by $19.3 million, the company said.

The voluntary filing was submitted to the U.S. Bankruptcy Court in Wilmington, Del.

In a statement, President and Chief Executive Officer Michael Hoffman said Constar intended "to continue to operate as usual during the restructuring process with minimal disruption to the business."

"We intend to pay all our obligations in full," he said.

The company has been struggling to recoup losses incurred in 2002 when it was spun off from Crown Holdings Inc., the Philadelphia Inquirer reported.

Share values will be wiped out, but not from a great height. Share values closed at 4 cents Tuesday after closing at 15 cents Monday, the newspaper said.

© 2008 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Boeing announces job relocations, business unit consolidation Boeing announces job relocations, business unit consolidation
2
Outrage over FERC decision on LNG exports Outrage over FERC decision on LNG exports
3
IS oil smugglers will feel wrath, Kurdish leader says IS oil smugglers will feel wrath, Kurdish leader says
4
Thales to research next-gen active radar antenna Thales to research next-gen active radar antenna
5
Exxon says it's safe from Russian sanctions Exxon says it's safe from Russian sanctions
Trending News
x
Feedback