Anchor Glass Container files for Chapter 11 bankruptcy

By Caroline Salls

Pittsburgh, Aug. 8 - Anchor Glass Container Corp. filed for Chapter 11 bankruptcy with the U.S. Bankruptcy Court for the Middle District of Florida, according to a company news release.

According to court documents, the company has $661.54 million in assets and $666.56 million in liabilities.

As of June 30, 59.5% of the company's outstanding 24.68 million shares of common stock was owned by investment funds and managed accounts affiliated with Cerberus Capital Management, LP, which bought all of the stock as part of a 2002 debt restructuring.

On Sept. 30, 2003, Anchor made an initial public offering for the stock.

In addition to $50 million in trade debt, the company's debt also includes $63.5 million under a Wachovia Capital Finance revolving credit facility; $15.37 million under a Madeleine LLC revolving B loan; $368.3 million in 11% senior secured notes; $2.95 million in unamortized premium on the notes; $10.06 million in capital lease obligations and $56.57 million under a Pension Benefit Guaranty Corp. unsecured obligation agreement.

The company's five largest unsecured creditors include:

*Pension Benefit Guaranty Corp. of Washington, D.C., with a $56.57 million claim;

*Anchor Glass Container Erisa Excess Plan of Tampa, with a $3.95 million claim;

*Temple-Inland of Austin, Texas, with a $1.35 million claim;

*City of Warner Robins, Ga., with a $1.15 million claim; and

*South Jersey Gas Co., of Folsom, N.J., with a $1.11 million claim. The company's existing senior secured credit facility lenders Wachovia Capital Finance Corp. have agreed to convert their loan facility into a debtor-in-possession facility in order for the company to continue its operations.

Anchor Glass is also in discussions for additional $15 million DIP financing from note agreement parties that it believes will be needed after the existing facility is used.

An emergency hearing on the interim DIP financing from Wachovia was requested for Tuesday.

Anchor also announced that Mark Burgess, who joined the company in May as executive vice president, finance and chief financial officer, has been appointed chief executive officer.

"The Chapter 11 process will give the company the opportunity to restructure its finances while it continues to operate its business," Burgess said.

Anchor Glass is a Tampa, Fla., manufacturer of glass containers. Its Chapter 11 case number is 05-15606.

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