Winter Harbor LLC
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Constar International

 

Constar International is a designer and manufacturer of polyethylene terephthalate (PET) containers for the beverage industry. Constar’s PET barrier technologies extend the shelf life of products such as beer, juice, tea, enhanced water, wine, flavored alcoholic beverages, sauces and ketchup, and other food products. Most notably, they are Europe’s largest manufacturer of PET preforms, bottles and closures. Constar International produces $350 million in annual revenue.

Situation

After the loss of a major contract with an international beverage distributor, Constar had been struggling to keep up with its financial obligations. Furthermore, its lenders did not have sufficient cash resources to continue to fund business operations. In a bid to complete a strategic sale of the company, Constar had filed for its third bankruptcy in five years.

Scope of Work

Our professionals served as financial advisor to Constar’s senior lender to lead Chapter 11 bankruptcy filings and negotiate an asset sale.

  • Performed an assessment of the Company’s current and future liquidity needs.

  • Worked daily with lender and Company to determine available borrowing.

  • Determined coverage of the lender’s collateral prior to the eventual bankruptcy filing.

  • Reviewed company budgets and negotiated pre-petition funding conditions.

  • Following the Company’s Chapter 11 bankruptcy filing, provided daily collateral tracking, calculated anticipated funding needs within borrowing base and tracked progress against DIP budget.

  • Provided bankruptcy-process support to the lender as the Company negotiated a sale within bankruptcy to a strategic acquirer.

Engagement Outcome

As part of managing Constar’s Chapter 11 bankruptcy filing, we lead negotiations with a strategic acquirer for the purchase of Constar. The purchase of Constar provided its secured lender with a 100-percent recovery of its outstanding pre-petition debt.