Constar Gets Green Light For Ch. 11 Plan

Law360, Wilmington (May 20, 2011, 5:39 PM EDT) -- A Delaware bankruptcy judge signed off on Constar International Inc.’s reorganization plan on Friday, capping off the plastic bottle maker’s second stint in Chapter 11 in two years.

U.S. Bankruptcy Judge Christopher S. Sontchi confirmed the plan, which will deleverage Constar’s balance sheet by swapping new stock and debt for the $220 million of floating rate notes that comprise 95 percent of the debtors’ capital structure.

Philadelphia-based Constar filed for bankruptcy in January, with its plan in hand, listing $418 million in assets and about $414...
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