Portola Packaging Puerto Rican debtor's Chapter 11 case dismissed

By Caroline Salls

Pittsburgh, Oct. 15 - Portola Packaging, Inc. debtor Northern Engineering and Plastics Corp. (Puerto Rico's) Chapter 11 bankruptcy case was dismissed Wednesday by the U.S. Bankruptcy Court for the District of Delaware.

According to the motion for dismissal, Portola recently discovered that the business never existed as a separate entity but was merely licensed to do business in Puerto Rico.

Portola said it acquired and merged with Northern Plastics Corp., Northern Engineering & Plastics Corp. and Northern Engineering & Plastics Corp.-West in 1994. Collectively, the companies were known as Nepco, and Portola believed Nepco Puerto Rico was a wholly owned subsidiary that was incorporated separately in Puerto Rico.

However, after filing for Chapter 11 bankruptcy protection, Portola learned that Nepco Puerto Rico never existed as a distinct separate entity.

Accordingly, creditors of Nepco Puerto Rico are actually creditors of Northern Plastics Corp., the company said.

Portola Packaging, a Batavia, Ill.-based designer, manufacturer and marketer of tamper-evident plastic closures, bottles and equipment for the beverage food industries and plastic closures and containers for the cosmetics industry, filed for bankruptcy on Aug. 27. Its Chapter 11 case number is 08-12001.

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