Chesapeake gets court approval for $485 million sale of operating businesses

By Jennifer Lanning Drey

Portland, Ore., March 23 - Chesapeake Corp. received court approval of the $485 million sale of its operating businesses to a group of investors including affiliates of Irving Place Capital Management, LP and Oaktree Capital Management, LP, according to a Monday filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.

As previously reported, under the sale agreement, the investor group will purchase substantially all of the assets of Chesapeake's U.S. operating subsidiaries and the outstanding capital stock or other equity securities of the company's foreign subsidiaries.

Chesapeake announced on March 17 that it had received no qualifying bids to compete with the Irvington/Oaktree stalking horse bid.

Completion of the sale is subject to specified closing conditions, including the investor group reaching a definitive agreement on exit financing and obtaining third-party and governmental approvals.

Chesapeake, a Richmond, Va.-based manufacturer and supplier of specialty paperboard packaging products, filed for bankruptcy on Dec. 29. Its Chapter 11 case number is 08-36642.

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