Packaging company files for Chapter 11
The paperboard and paper based packaging company, which makes pizza boxes and clamshells for the food industry, said it is also set to file for Canadian protection with an Ontario court.
According to the company, the Chapter 11 move will allow it to restructure its debt, and ensure its long-term growth and profitability; It claims that the refinancing fund of $750m will go to operations, which will 'continue as usual at all facilities.'
"The acceleration of the unprecedented global economic recession has weakened demand for packaging, and the frozen credit markets have prevented an out-of-court refinancing of our capital structure.
"While this is not the outcome we anticipated, we are taking this action to become a more financially healthy company," said Patrick Moore, chief executive of the company, in a statement.
