Anchor Glass Container Corporation Disclosure Statement and Plan of Reorganization Approved by the Bankruptcy Court for Solicitation of Votes; Company Expects to Emerge from Chapter 11 in Late April 2006.TAMPA, Fla. -- Anchor Glass Container Corporation ("Anchor") today announced that it has received approval from the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. Middle District of Florida Tampa Division to submit for voting its proposed Plan of Reorganization and Disclosure Statement. Anchor's Plan of Reorganization will reduce the company's long term debt by approximately $370 million. A confirmation hearing has been set for April 17, 2006. Assuming court approval of the plan, Anchor expects to emerge from Chapter 11 in late April 2006. "This plan of reorganization is an important milestone for us. With the support of our customers, vendors and employees we have the framework in place to enable Anchor Glass to remain a strong and innovative competitor in the marketplace," said Mark Burgess, Anchor's Chief Executive Officer. The Ad Hoc Committee ad hoc committee A committee formed with the purpose of addressing a specific issue or issues, which theoretically is disbanded once its raison d'etre is finished of Noteholders and the Official Committee of Unsecured Creditors have advised Anchor Glass that they will recommend the acceptance of this plan. The terms of Anchor's Plan of Reorganization call for a debt-for-equity swap Debt-for-equity swap A swap agreement to exchange equity/returns for debt returns or the converse over a prearranged length of time. that will give Anchor's Senior Secured Noteholders 100 percent of the company's equity. Anchor will exit chapter 11 as a privately held company privately held company A firm whose shares are held within a relatively small circle of owners and are not traded publicly. with long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. of $135 million. To ensure strong liquidity, Anchor intends to put in place a revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility of approximately $65 million. Unsecured creditors will receive a cash distribution of approximately $8.6 million. Based upon current estimates, unsecured claims approximate $120 million. Current equity holders will receive no distribution and their shares will be cancelled. About Anchor Anchor Glass Container Corporation is the third largest manufacturer of glass containers in the United States. It has eight strategically located facilities where it produces a diverse line of flint (clear), amber, green and other colored glass containers for the beer, beverage, food, liquor and flavored alcoholic beverage markets. Forward-Looking Statements This press release includes forward-looking statements. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements. Forward-looking statements involve risks and uncertainties faced by the Company including, but not limited to, economic, competitive, governmental and technological factors outside the control of the Company that may cause actual results to differ materially from the forward-looking statements. These risks and uncertainties may include the outcome of the chapter 11 proceedings Chapter 11 Proceedings Provisions of the Bankruptcy Reform Act under which the debtor firm is reorganized by a court because the estimated value of the reorganized firm exceeds the expected proceeds from its liquidation. , the highly competitive nature of the glass container industry Glass containers are common parts of everyday life - we enjoy beverages such as water, soft drink, juice, beer, wine, spirit from bottles - jams and spreads from jars. The glass container's manufacture often involves a far greater level of complexity, automation and involvement and the intense competition from makers of alternative forms of packaging; fluctuations in the prices for energy, particularly natural gas, and other raw materials; the Company's focus on the beer industry and its dependence on certain key customers; the seasonal nature of brewing and other beverage industries; volatility in demand from emerging new markets; the Company's dependence on certain executive officers; changes in environmental and other government regulations; and actions that may be taken by creditors and vendors. The Company operates in a changing environment in which new risk factors can emerge from time to time. It is not possible for management to predict all of these risks, nor can it assess the extent to which any factor, or a combination of factors, may cause actual results to differ materially from those contained in forward-looking statements. All forward-looking statements are subject to risks and uncertainties, including without limitation those identified in the Company's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , which could cause actual results to differ from those projected. The Company disclaims any obligation to update any forward-looking statements. |
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