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Anchor Glass first-quarter loss narrows

US Anchor Glass Container Corp. reported a net loss of US$ 203,000, or 71 cents a share, for the quarter ended 31 March according to a quarterly report filed on 15 May with the Securities and Exchange…

US Anchor Glass Container Corp. reported a net loss of US$ 203,000, or 71 cents a share, for the quarter ended 31 March according to a quarterly report filed on 15 May with the Securities and Exchange Commission. The figure compares with a net loss of US$ 10.5 million, or US$ 2.68 a share, reported during the same period in 2001, the filing said. Net sales for the first quarter were US$ 178.4 million, compared with US$ 169.4 million for the first quarter of 2001, an increase of US$ 9 million, the filing said. The improvement on the margin on net sales was due to a shift in product mix, the company said, toward the “ready-to-drink” line, general price increases and an increase in shipment volume. Anchor Glass Container is the third largest manufacturer of glass containers in the US and employs 2,900 people at 12 locations. The company, which filed for Chapter 11 protection in the US Bankruptcy Court in Tampa on 15 April said the petition was spurred by the need to erase about US$ 50 million in debt. Under a pre-negotiated reorganization plan, the company said that holders of its first mortgage notes would retain their outstanding US$ 150 million of the notes, plus a consent fee for a waiver of the change-of-control provisions and other non-financial changes to the terms of the notes, the filing said. Also, holders of the senior notes would be repaid in cash at 100% of the principal amount. Holders of Anchor“s Series A preferred stock would receive a cash distribution of US$ 22.5 million, and the stock would be cancelled. The company“s Series B preferred stock and common stock would be canceled and holders would receive no distribution under the plan. All of Anchor“s other unaffiliated creditors, including trade creditors, would be unimpaired and be paid in the course of business, the filing said. Anchor“s main sources of liquidity through this year are expected to come from funds from operations, borrowings under a credit facility and the funding of the restructuring transactions, the filing said. The unfunded interest payments on the first mortgage notes and the senior notes – about US$ 10.9 million – are providing additional liquidity for current needs.

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