Anchor Glass recapitalization plan confirmed

US glass container manufacturer Anchor Glass Container Corporation received confirmation of a pre-negotiated plan of reorganization filed last April, paving the way for reorganization to be concluded …

US glass container manufacturer Anchor Glass Container Corporation received confirmation of a pre-negotiated plan of reorganization filed last April, paving the way for reorganization to be concluded by the end of August. The plan was approved, on schedule, by Judge C. Timothy Corcoran, III, of the US Bankruptcy Court for the Middle District of Florida, Tampa Division. Under terms of the re-capitalization approved by the court, Anchor“s secured bond holders retained US$ 150 million of first mortgage notes that are outstanding, plus received a consent fee for a waiver of the change-of-control and pre-payment provisions and other non-financial changes to the terms of the notes. The company“s unsecured bondholders will be paid US$ 50 million in cash. Holders of Anchor Glass Series A preferred stock will receive cash payments of US$ 22.5 million. All Series B preferred stock and common stock will be cancelled. The company said it received 100% affirmative votes on the plan from “those voting on the plan”. In mid-March, Anchor signed an agreement with Cerberus Capital Management LP, a New York City-based investment management firm, to infuse Anchor with US$ 100 million in new capital. The filing was prompted by liquidity issues raised by change of control provisions in the company“s debt instruments. The pre-negotiated elements of the transaction provided for no disruption to the company“s employees, trade creditors, customers and overall operations.