Constar International Inc. Completes Its Financial Restructuring and Emerges From Chapter 11 as Constar International LLC
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o Constar emerges with strengthened balance sheet, new funding, now privately held
o Pre-Chapter 11 secured note holders now own majority of Constar
o Customer, supplier, and employee support was essential to successful reorganization
Philadelphia, PA - June 1, 2011 -- Constar International LLC, a leading global producer of PET (polyethylene terephthalate) plastic containers for food and beverages, announced that the Company and its affiliated entities completed their financial restructuring and successfully emerged from Chapter 11 on May 31, 2011. The Company is now named Constar International LLC. The reorganization was completed less than five months from the filing of their Chapter 11 petitions on January 11, 2011. In conjunction with its emergence from Chapter 11, Constar also announced that it had entered into a new financing facility with Wells Fargo to provide the Company with ongoing liquidity.
Constar President and Chief Executive Officer Grant Beard commented, "On behalf of our Board and the management team, I want to thank our senior secured note holders for their support and willingness to restructure our debt and deleverage our balance sheet. At the same time, I want to express my appreciation to our loyal customers, committed suppliers, and dedicated employees who have supported and encouraged us throughout the process. We emerge a revitalized company with a vastly improved and deleveraged balance sheet. Combining our improved financial condition with our X4(TM) and VCT® panel-less hot fill container geometries and DiamondClear® oxygen-scavenging technology, we are better positioned than ever to provide our customers with the product quality, innovation, and service they have come to expect from Constar."
Black Diamond Capital Management, LLC, ("Black Diamond") through funds managed by the firm, will emerge as the largest shareholder of Constar, and Solus Asset Management ("Solus") will be the second largest. Together, the two investors represent majority ownership.
Les Meier, Principal at Black Diamond, and Mark Lawrence, Managing Director at Solus, stated jointly, "Constar's new private ownership base is committed to growing the Company in partnership with current management and sees tremendous opportunity in building the Company into a premier global packaging supplier."
About Constar:
Philadelphia, Penn.-based Constar International LLC is a leading global producer and supplier of PET (polyethylene terephthalate) plastic containers and preforms for food and beverages. The Company provides full-service packaging solutions, from product design and engineering, to ongoing customer support and material licensing agreements. Its customers include many of the world's leading branded consumer products companies. Visit www.constar.net.
About Black Diamond:
Black Diamond Capital Management, LLC is a leading alternative asset management firm with over $6 billion in assets under management. With complementary control distressed/private equity, hedge fund and CLO vehicles, Black Diamond invests in performing, stressed and distressed securities. Founded in 1995, Black Diamond has offices in Greenwich, CT and Lake Forest, IL.
About Solus:
Solus Alternative Asset Management LP is a New York-based, SEC-registered, independent investment management firm specializing in event and credit-related investment strategies.
