Caraustar Enters Ch. 11 As $190M In Debt Looms

Law360, New York (June 1, 2009, 12:00 AM EDT) -- Caraustar Industries Inc., a manufacturer of paperboard products, has filed for Chapter 11 protection, citing a constrained lending environment and the company's need to reduce the majority of $190 million in long-term debt scheduled to mature Monday.

Austell, Ga.-based Caraustar and 18 subsidiaries filed voluntary petitions and a prenegotiated reorganization plan in the U.S. Bankruptcy Court for the Northern District of Georgia late Sunday after reaching a restructuring agreement with certain noteholders that would reduce the company's debt obligations by approximately $135 million, the company announced...
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