Anchor Glass files for bankruptcy

Bankruptcy Court for the Middle District of Florida, Tampa Division, which must approve any plan.

Under a deal worked out with its creditors in a so-called "pre-packaged" bankruptcy, the Tampa-based company will erase about $50 million of debt.

"The action allows Anchor Glass to re-capitalize and provides us with a more stable financial base for the future," president and chief operating officer Richard M. Deneau said in a statement.

Anchor Glass said reorganization was partially necessary because its Canadian parent company, Consumers Packaging, Inc., defaulted on $75 million in bonds last year.

Anchor also blamed an overleveraged balance sheet, constant short-term liquidity complaints and an underfunded pension, which will require about $177 million over the next four years.

Under terms of the reorganization, Anchor Glass has signed agreements with bondholders, who will receive $50 million in cash, and a majority of holders of its Series A preferred stock, who will receive cash payments of $22.5 million.

All Series B preferred stock and common stock will be cancelled, meaning it is worthless.

Anchor Glass had 2001 revenues of $702 million. It employs 2,900 at 12 U.S. locations.