Constar International Inc. announced today that the U.S. Bankruptcy Court for the District of Delaware indicated its approval of Constar’s emergence from Chapter 11 in accordance with the Plan of Reorganization for Constar and its affiliated debtors. At the hearing, the Court ruled that Constar had met all of the statutory requirements to confirm its Plan, and overruled the one remaining objection to confirmation. Constar expects to emerge from Chapter 11 by the end of May, after entry of the Court’s confirmation order.
Under the Plan, Constar’s Subordinated Notes will be converted into common stock of the reorganized company. All other creditor classes will be unimpaired. The Company’s current equity will be cancelled and pre-petition equity holders will receive no distribution under the Plan.
Michael Hoffman, President and Chief Executive Officer of Constar, commented, “We are very pleased with the Court’s decision today. We could not have accomplished this without the loyalty of our customers, the professionalism of our employees and the commitment of our creditors. We are grateful for their support through this process.”
The Company’s Debtor in Possession (DIP) credit facility contemplates conversion of such facility into exit financing upon the satisfaction of various conditions. Constar expects to convert the DIP credit facility into exit financing upon the Company’s emergence from Chapter 11.
| Walter S. Sobon Executive Vice President and Chief Financial Officer +1 215-552-3700 |
