Constar Bankruptcy Auction Nets $102M From PlastipakMichael Bathon
Constar International Holdings LLC, a maker of plastic soda bottles, will sell virtually all its assets to Plastipak Packaging Inc. for $102.5 million after it beat Amcor Rigid Plastics USA Inc. at a bankruptcy auction.
The sale price rose $33.95 million, or almost 50 percent, from Amcor’s $68.5 million initial offer to kick off bidding yesterday for the majority of its assets, court papers show.
Constar will seek court approval of the sale and a separate $3.1 million sale to J.M. Smucker Co. at a hearing scheduled for Feb. 10, according to court documents filed today in Wilmington, Delaware.
The plastic-bottle maker sought bankruptcy for the third time in December, previously filing for court protection in 2008 and 2011. Constar’s previous bankruptcies resulted in its creditors taking ownership through pre-arranged reorganization plans swapping debt for equity.
Constar, based in Trevose, Pennsylvania, blamed this bankruptcy on lack of financing, while the first was caused by the recession and the second followed the decision of its biggest customer, PepsiCo Inc.’s Pepsi-Cola Advertising & Marketing Inc., to manufacture its own containers.
The case is In re Constar International Holdings LLC, 13-bk-13281, U.S. Bankruptcy Court, District of Delaware (Wilmington). The second case is In re Constar International Inc., 11-10109, U.S. Bankruptcy Court, District of Delaware (Wilmington). The first bankruptcy is In re Constar International Inc., 08-13432, U.S. Bankruptcy Court, District of Delaware (Wilmington).