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Philadelphia, PA - January 21, 2009 -- Constar International Inc. (OTC: CNSTQ.PK) announced that on January 20, 2009 the U.S. Bankruptcy Court for the District of Delaware ("the Court") granted final approval of the Company's $75 million debtor-in-possession ("DIP") financing. The DIP financing includes the option for the Company to convert it into a three-year exit financing facility, subject to satisfying certain conditions. The Company previously received interim approval of the DIP financing facility from the Court on December 31, 2008.
Michael Hoffman, President and Chief Executive Officer of Constar, commented, "The Court's approval of our DIP financing is a significant step in our reorganization process and one we are pleased to have accomplished. We appreciate the ongoing support of our loyal customers, committed suppliers and dedicated employees as we progress with our plans to quickly emerge from bankruptcy."
As previously announced, Constar and its subsidiaries filed to reorganize under Chapter 11 on December 30, 2008, in the U.S. Bankruptcy Court for the District of Delaware. The case number for the consolidated cases is 08-13432. Additional information about Constar's restructuring is available on the Company's web site, www.constar.net. For access to Bankruptcy Court documents and other general information about the Chapter 11 reorganization cases, please visit http://chapter11.epiqsystems.com/constar.
Cautionary Note Regarding Forward-Looking Statements
Except for historical information, all information in this news release consists of forward-looking statements within the meaning of the federal securities laws, including statements regarding the intent, belief or current expectations of the Company and its management which are made with words such as "will," "expect," "believe," and similar words. These forward-looking statements involve a number of risks, uncertainties and other factors, which may cause the actual results to be materially different from those expressed or implied in the forward-looking statements. Important factors that could cause the actual results of operations or financial condition of the company to differ from expectations include: (i) the Company's ability to continue as a going concern; (ii) the ability of the Company to operate pursuant to the terms of any debtor-in- possession credit facility; (iii) the Company's ability to obtain court approval with respect to motions in the Chapter 11 proceeding; (iv) the ability of the Company to develop, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 proceeding; (v) risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the Company to propose and confirm one or more plans of reorganization, for the appointment of a Chapter 11 trustee or to convert the cases to Chapter 7 cases; (vi) the ability of the Company to obtain and maintain normal terms with vendors and service providers; (vii) the Company's ability to maintain contracts that are critical to its operations; (viii) the potential adverse impact of the Chapter 11 cases on the Company's liquidity or results of operations; (ix) the ability of the Company to fund and execute its business plan;(x) the ability of the Company to attract, motivate and/or retain key executives and employees; and (xi) other risks and factors regarding the Company identified from time to time in the Company's reports filed with the SEC, including the risk factors identified in its Annual Report on Form 10-K for the year ended December 31, 2007, and in subsequent filings made prior to, on or after today. The Company does not intend to review, revise, or update any particular forward-looking statements in light of future events.
About Constar
Philadelphia-based Constar is a leading global producer of PET (polyethylene terephthalate) plastic containers for food, soft drinks and water. The Company provides full-service packaging solutions, from product design and engineering, to ongoing customer support. Its customers include many of the world's leading branded consumer products companies.
For more information contact:
Walter S. Sobon
Executive Vice President and Chief Financial Officer
(215) 552-3700
Ed Bisno (Investors)
Bisno Communications
(212) 717-7578
Michael Freitag or Andrea Calise (Media)
Kekst and Company
(212) 521-4800