Over the next four years the company will need to raise $177 million in order to meet its pension liabilities. Anchor also blamed an over leveraged balance sheet and constant short-term liquidity complaints reasons for its filing.
Under a deal worked out with its creditors, Anchor will erase about $50 million of its debt. The company also signed agreements with its bondholders, who will receive $50 million in cash while the majority of holders of its Series A preferred stock will receive cash payments of $22.5 million. All of its Series B preferred stock and common stock will be cancelled.
Anchor Glass had 2001 revenues of $702 million. It
employs 2,900 and has 12 locations across the US.