Winter Harbor LLC

Constar International

Secure Lender Receives 100-Percent Recovery

 

Constar International is a designer and manufacturer of polyethylene terephthalate (PET) containers for the beverage industry. Constar has developed a suite of proprietary, industry-leading PET technologies tailored to the specific oxygen barrier needs of our customers. Constar’s PET barrier technologies protect sensitive food and beverage products from degradation induced by oxygen ingress, loss of carbonation or light strike. They extend the shelf life of products such as beer, juice, tea, enhanced water, wine, flavored alcoholic beverages, sauces and ketchup, and other food products. They are Europe’s largest manufacturer of PET preforms, bottles and closures. Constar International produces $350 million in annual revenue.

Our Role

Our professionals served as Financial Advisor to Constar’s senior lender to lead Chapter 11 bankruptcy filing and negotiate 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.