Consumers Packaging, formerly Canada's largest manufacturer of glass containers, has filed an assignment in bankruptcy. KPMG of Toronto has been appointed as trustee.
During the last 10 months, Consumers Packaging has been operating under the protection of the Companies Creditors' Arrangement Act. In this period, virtually all of its Canadian and overseas assets have been sold and the claims of its secured creditors have been settled.
The Canadian glass manufacturing business was sold to OI Canada in October, 2001 and the Canadian plastic container manufacturing business (Pet- Pak) was sold to Amcor PET in December, 2001.
According to Richard Harris, Senior Vice President of KPMG: "The bankruptcy will provide the appropriate forum for distribution of the remaining proceeds of sale among Consumers' ordinary creditors. KPMG estimates that valid creditors' claims of about $400 million (€283 million) will be filed against residual assets of about $25 million to $30 million."
CPI's directors resigned on April 29, 2002. At the Company's request, trading in the common shares of CPI was suspended by the Toronto Stock Exchange on December 31, 2001.