NEW YORK, March 23 (Reuters) - Chesapeake Corp, the bankrupt paperboard and plastic packaging maker, said on Monday it has received court approval to sell itself to an investor group.
Chesapeake filed for Chapter 11 bankruptcy protection in December, saying it had reached a deal with a group of investors, including affiliates of Irving Place Capital Management LP and Oaktree Capital Management LP, to sell itself for about $485 million, minus certain obligations.
The company said on Monday that the U.S. Bankruptcy Court in Richmond, Virginia, had entered an order approving the sale of its operating businesses to the investors.
Chesapeake said it expects the deal to close by mid-April, subject to closing conditions and regulatory approvals.
The Richmond, Virginia-based company had said at the time of its bankruptcy filing that it could not keep up with interest payments on its debt, as the slowing economy and aggressive competition undermined demand for its folding cardboard boxes, leaflets and plastic beverage bottles.
The case is In re: Chesapeake Corp, U.S. Bankruptcy Court, Eastern District of Virginia, No. 08-36642.
(Reporting by Emily Chasan) (emily.chasan@thomsonreuters.com; +1 646 223 6114; Reuters Messaging: emily.chasan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Chesapeake filed for Chapter 11 bankruptcy protection in December, saying it had reached a deal with a group of investors, including affiliates of Irving Place Capital Management LP and Oaktree Capital Management LP, to sell itself for about $485 million, minus certain obligations.
The company said on Monday that the U.S. Bankruptcy Court in Richmond, Virginia, had entered an order approving the sale of its operating businesses to the investors.
Chesapeake said it expects the deal to close by mid-April, subject to closing conditions and regulatory approvals.
The Richmond, Virginia-based company had said at the time of its bankruptcy filing that it could not keep up with interest payments on its debt, as the slowing economy and aggressive competition undermined demand for its folding cardboard boxes, leaflets and plastic beverage bottles.
The case is In re: Chesapeake Corp, U.S. Bankruptcy Court, Eastern District of Virginia, No. 08-36642.
(Reporting by Emily Chasan) (emily.chasan@thomsonreuters.com; +1 646 223 6114; Reuters Messaging: emily.chasan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.