Posted by Colby Rogers - email
RICHMOND, Va. (AP) - Specialty packaging company Chesapeake Corp. will close on a sale of its business units in April under a plan approved by a U.S. Bankruptcy Court judge.
The Richmond-based company that operates mostly in Europe filed for Chapter 11 bankruptcy protection last month.
It is planning to sell its subsidiaries as a going concern to an investment group if a higher bid does not come forward at a court-supervised auction on March 19. A sale hearing is set for March 23 with an April 3 closing date.
Chesapeake makes paper cartons and plastic containers for the health care, beverage and food markets. It has been cutting jobs and realigning operations in an effort to foster growth and reduce costs.
Court filings said that Chesapeake could no longer support about $521 million in borrowed debt because of the economic downturn and difficulty obtaining financing.