Constar International Holdings, which lost its contract with PepsiCo last year, filed for its third bankruptcy in a bid to complete the sale of the company
Philadelphia-based Constar International Holdings LLC filed its third bankruptcy in five years on Thursday in a bid to complete the sale of the company.
Constar is a privately held manufacturer of plastic food and drink containers. It operates nine plants in the United States and Europe. Constar has been struggling after losing a contract with global food and beverage giant PepsiCo Inc. last year, Reuters said in a report.
According to the report, Constar has been working to nail down a sale of its US business to Amcor Rigid Plastics USA Inc. for $68.5 million before it runs out of money. The plastics maker filed its documents at the US Bankruptcy Court in Wilmington, Delaware.
Reuters, citing the filing, said that Constar does not have sufficient cash resources to continue to operate the business.
Constar's proposed sale to Amcor will be subject to higher bids at a court-supervised auction. The money raised will be used to pay the company's creditors, the report said.
Constar said it had up to $500 million in liabilities. It's largest shareholders include investment firms Solus Alternative Asset Management and Black Diamond Capital Management, Reuters said.