Atlantis Plastics, Inc. has filed a motion with theBankruptcy Court to approve

Tag : plastics products
Atlantis Plastics, Inc. announced today that on Sunday, August 10, 2008,it filed voluntary petitions for Chapter 11 reorganizations foritself and its subsidiaries in the United States Bankruptcy Courtfor the Northern District of Georgia to facilitate the sale of itsPlastic Films and Molded Plastic Products businesses. The Chapter11 bankruptcy filings and the aforementioned purchase agreementswere undertaken with the support of the Company's Senior SecuredLenders. The Company will seek Bankruptcy Court approval of thesales pursuant to Section 363(f) of the Bankruptcy Code. Theproposed sales will be subject to higher and better offers,bankruptcy court approval and other conditions customary intransactions of this type. The Company anticipates closing thesales in October 2008.
"After reviewing all of our alternatives, the Company's managementand Board of Directors, working in consultation with outside legaland financial advisors, unanimously determined that sales of ourPlastic Films and Molded Plastic Products businesses through theChapter 11 process would provide the best result for our creditors,suppliers, employees and customers," said Bud Philbrook, ChiefExecutive Officer and President of the Company. He added: "We arepleased to have entered into agreements with AEP and Monomoy, bothof which share our strong commitment to customer care. We areconfident that the Films and Molded Products businesses of AtlantisPlastics will be well positioned with these well respectedcompanies."
The Company further announced today that it has reached anagreement with a consortium of lenders led by GE Business FinancialServices Inc. for a $26.5 million post petition financing facilitywhich will provide the Company with sufficient working capital andfinancial resources to continue normal business operations at allof its facilities. The Company has filed a motion with theBankruptcy Court to approve that financing and has requested anexpedited hearing on the motion so as not to disrupt itsbusinesses.
The Company is also seeking, and expects to receive, approval fromthe 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 ofpolyethylene stretch and custom films and molded plastic products.Stretch films are used to wrap pallets of materials for shipping orstorage. Custom films are made- to-order specialty film productsused in the industrial and packaging markets. Atlantis' injectionmolded and profile extruded plastic products are used primarily inthe appliance, automotive, agricultural, building supply andrecreational vehicle industries.


SOURCE Atlantis Plastics, Inc.
CONTACT: Paul G. Saari, Chief Financial Officer, +1-800-497-7659,for Atlantis Plastics, Inc.
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