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Berry Plastics plans to acquire more than 99.99% of Pliant stock
By Caroline Salls
Pittsburgh, Oct. 19 - Berry Plastics Corp. intends to acquire more than 99.99% of the common stock of Pliant Corp. upon Pliant's emergence from bankruptcy, according to a Berry news release.
According to the release, under the joint plan of reorganization proposed for Pliant's bankruptcy case by Pliant and an affiliate of Apollo Management, LP, Berry is entitled to receive up to 25% of the common equity of Pliant.
Berry said it now also intends to acquire the remaining 75% of the common stock available under the plan, and it is currently evaluating its equity investment financing options.
Berry said Pliant will remain separately capitalized as an unrestricted subsidiary of Berry and will be operated as an additional operating division.
"Pliant Corporation brings to Berry an important group of customers, employees, manufacturing locations and products," Berry chairman and chief executive officer Ira Boots said in the release.
"Their film product line enhances Berry's current offering with innovation and broader market appeal. Berry's rigid plastic packaging offering will be extended with the addition of Pliant's flexible packaging."
The transaction is expected to close by the end of the year and is subject to Berry receiving necessary financing and customary regulatory approvals.
The Apollo affiliate will still be required to fulfill its plan obligations if Berry's conditions are not met.
As previously reported, Pliant's plan was confirmed on Oct. 6.
Pliant, a Schaumburg, Ill.-based producer of value-added film and flexible packaging products, filed for bankruptcy on Feb. 11, 2009 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 09-10443.
Berry Plastics makes plastic packaging products and is based in Evansville, Ind.
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