Anchor Glass: Bankruptcy protection sought

Tampa, Florida.-based US Anchor Glass Container Corp. said it had sought bankruptcy court protection in mid-April to avoid bond payments and to eliminate US$ 50 million of debt. The closely-held maker…

Tampa, Florida.-based US Anchor Glass Container Corp. said it had sought bankruptcy court protection in mid-April to avoid bond payments and to eliminate US$ 50 million of debt. The closely-held maker of glass beverage containers said the Chapter 11 filing would allow it to avoid triggering change-in-control provisions of its loans after Cerberus Capital Management LP agreed to invest US$ 100 million, which includes US$ 80 million in equity capital. Under those provisions, Anchor would have been required to purchase all outstanding senior notes and other bonds at 101% of the principal amount. Anchor operates nine glass-making plants in the US, including one in Connellsville, Fayette County, that supplies Latrobe Brewing Co. with Rolling Rock bottles.