Atlantis Plastics, Inc. Announces Asset Purchase Agreements for Sale of Plastic Films and Molded Plastic Products Businesses, Fi
August 11 2008 - 8:10AM
PR Newswire (US)
ATLANTA, Aug. 11 /PRNewswire-FirstCall/ -- Atlantis Plastics, Inc.
(OTC:ATPL.PK) (the "Company") today announced that it has reached
definitive agreements to sell substantially all of the assets of
its Plastic Films business to AEP Industries Inc. (NASDAQ:AEPI) and
substantially all of the assets of its Molded Plastics Products
business to a subsidiary of Monomoy Capital Partners L.P., a New
York based private equity fund. The Company also announced today
that on Sunday, August 10, 2008, it filed voluntary petitions for
Chapter 11 reorganizations for itself and its subsidiaries in the
United States Bankruptcy Court for the Northern District of Georgia
to facilitate the sale of its Plastic Films and Molded Plastic
Products businesses. The Chapter 11 bankruptcy filings and the
aforementioned purchase agreements were undertaken with the support
of the Company's Senior Secured Lenders. The Company will seek
Bankruptcy Court approval of the sales pursuant to Section 363(f)
of the Bankruptcy Code. The proposed sales will be subject to
higher and better offers, bankruptcy court approval and other
conditions customary in transactions of this type. The Company
anticipates closing the sales in October 2008. "After reviewing all
of our alternatives, the Company's management and Board of
Directors, working in consultation with outside legal and financial
advisors, unanimously determined that sales of our Plastic Films
and Molded Plastic Products businesses through the Chapter 11
process would provide the best result for our creditors, suppliers,
employees and customers," said Bud Philbrook, Chief Executive
Officer and President of the Company. He added: "We are pleased to
have entered into agreements with AEP and Monomoy, both of which
share our strong commitment to customer care. We are confident that
the Films and Molded Products businesses of Atlantis Plastics will
be well positioned with these well respected companies." The
Company further announced today that it has reached an agreement
with a consortium of lenders led by GE Business Financial Services
Inc. for a $26.5 million post petition financing facility which
will provide the Company with sufficient working capital and
financial resources to continue normal business operations at all
of its facilities. The Company has filed a motion with the
Bankruptcy Court to approve that financing and has requested an
expedited hearing on the motion so as not to disrupt its
businesses. The Company is also seeking, and expects to receive,
approval from the Bankruptcy Court for a variety of other motions
it has filed, including, but not limited to, requests to pay wages
and salaries, honor existing employee benefits, and continue
customer programs. About Atlantis Plastics: Atlantis Plastics, Inc.
is a leading U.S. manufacturer of polyethylene stretch and custom
films and molded plastic products. Stretch films are used to wrap
pallets of materials for shipping or storage. Custom films are
made- to-order specialty film products used in the industrial and
packaging markets. Atlantis' injection molded and profile extruded
plastic products are used primarily in the appliance, automotive,
agricultural, building supply and recreational vehicle industries.
For more information, please visit http://www.atlantisplastics.com/
. For Further Information: Paul G. Saari Chief Financial Officer
(800)497-7659 DATASOURCE: Atlantis Plastics, Inc. CONTACT: Paul G.
Saari, Chief Financial Officer, +1-800-497-7659, for Atlantis
Plastics, Inc. Web site: http://www.atlantisplastics.com/
Copyright