Anchor Glass files pre-negotiated plan of reorganization

The company also expects to elect a new board of directors.

In a press release Monday, the maker of glass beverage containers said its secured bondholders will retain $150 million of their first mortgage notes outstanding, plus a consent fee for the change-of-control provisions waiver and other nonfinancial changes to the notes' terms.

Anchor Glass signed lock-up and support agreements with a majority of its unsecured bondholders, who will receive $50 million in cash. The company also signed lockup and support agreements with a majority of its Series A preferred stock holders, who will receive cash $22.5 million in cash.

The reorganization filing was prompted by liquidity issues raised by change of control provisions in the company's debt instruments.

The prenegotiated elements of the reorganization provide for no disruption to the company's employees, creditors, customers and overall operations.

In March, Anchor Glass arranged for new funding through a prearranged Chapter 11 bankruptcy filing.Cerberus Capital Management agreed to put $100 million of new capital into Anchor Glass, including $80 million in the form of equity capital.