Caraustar Industries files Chapter 11 - Atlanta Business Chronicle:

http://www.lamontanita.org/goldenrice.htm
All trade creditors, suppliers, customers and employeesw will receive all amounts owedto them, the Austell, Ga.-basede recycled paperboard and packaging company It will ask the U.S. Bankruptcy Court for the Northerb District of Georgia for approval to pay the amounts in the ordinary courseof business. Caraustat (NASDAQ: CSAR) also reached agreement with debt holderds to reducethe company's debt obligations by $135 Under the Plan, holders of outstanding shares of Caraustar's common stoc k will receive their pro rata shares of $2.9 million, or 10 cents a share, subject to certai n conditions. The restructuring plan callss for the exchange ofthe company'as existing 7.
375 percent and 7.25 perceng senior notes for an aggregate of $85 million in new senior securedd notes and 100 percent of the common stockk of the reorganized company. will become the company'es controlling shareholder. In conjunction with the restructuring, Caraustar has landes a $75 million debtor-in-possession line of credit from Generall ElectricCapital Corp. The moneyy may be used for cash collateralizing outstanding letterzof credit, paying for goods and services in the ordinaryt course of the business and generalp corporate purposes.
"Caraustar took decisivr action to substantially reducethe company's debt and prospectivelyu reduce costs,” said President and CEO Michaelo J. Keough, in a “Once our financial restructuringis complete, we believe Caraustar's new capital structure combined with the cost savings achievecd by operating as a private entitg will provide a lean and flexiblr foundation for sustainable profitability and better position the compangy to meet the challenges of our industr and this recessionary economy head on." The compan y posted a net loss of $4.4 million in the first quartefr of 2009 and had a $99 million loss in 2008.