Chesapeake Corp. files for bankruptcy protection
Bankruptcy
Specialty packaging company Chesapeake Corp. has filed for Chapter 11 bankruptcy protection and plans to sell itself to a group of investors for about $485 million.
The company's stock, which is traded over-the-counter, closed at 6 cents Monday, well off the $5.61 it traded at a year ago and a sharp drop from the more than $20 it traded for just a few years ago.
Chesapeake, which makes paper cartons and plastic containers for the health care, beverage and food markets, has been cutting jobs and realigning operations in an effort to foster growth and reduce costs. The company struggled earlier this year to complete a $250 million credit line with a group led by GE Commercial Finance Ltd. and General Electric Capital Corp. to refinance prior debt.
The company's shares were delisted from the New York Stock Exchange in October. Chesapeake last month reported a loss for the nine months ended Sept. 28 of $277.1 million as the company booked hefty environmental cleanup and other charges and as sales slipped to $752.5 million due to lost business with British American Tobacco and less demand for drug and health care packaging. In its 10-Q filing with the Securities and Exchange Commission, Chesapeake listed total assets of $936.6 million as of Sept. 28 and $937.1 million in total liabilities.
Chesapeake filed for bankruptcy Monday in the Eastern District of Virginia in Richmond under Chapter 11, which allows a company to reorganize. Non-U.S. units are not included in the filing.
Related listings
-
Ill. farmer pleads guilty in bankruptcy fraud case
Bankruptcy 11/27/2008A southern Illinois farmer pleaded guilty Wednesday to federal bankruptcy fraud charges, and his attorney said outside court that his client had nothing to do with the unsolved killings of a potential witness and his wife.Joseph Diekemper, 60, of Car...
-
Circuit City files for bankruptcy protection
Bankruptcy 11/11/2008Circuit City Stores Inc., the nation's second-biggest electronics retailer, filed for bankruptcy protection on Monday but plans to stay open for business as the busy holiday season approaches.It said it decided to file for bankruptcy protection becau...
-
British bankruptcies jump 9.5 percent in 3Q
Bankruptcy 11/10/2008Individual bankruptcies in Britain jumped 9.5 percent in the third quarter from last year, while company insolvencies rose a stunning 26 percent as the financial crisis hiked the cost of loans, official figures showed Friday.Britain's Office for Nati...
New York Commercial Litigation Law Firm - Woods Lonergan PLLC
Founded in 1993 by Managing Partner James F. Woods, Woods Lonergan PLLC has built a strong reputation as a resourceful and industrious firm that provides clients with clear, concise, and straightforward answers to their most challenging legal issues. Partner Lawrence R. Lonergan, who joined the firm in 2008, has been a friend and colleague to Mr. Woods for over 40 years and shares the same business philosophy. Woods Lonergan PLLC’s collective experience and expertise enables the firm to expeditiously and effectively analyze the increasing challenges clients face in an evolving business and legal world, in many instances, avoiding unnecessary time and expense to our clients. Our mission is simple: provide cutting-edge expertise and sound advice in select areas of the law for corporate and business clients. We thrive on providing each client with personalized attention, forceful representation, and a collaborative team effort that embraces collective knowledge.