Company Files Chapter 11, Cites Pension Plan

April 17, 2002 ( - Florida-based Anchor Glass Container Corp., a manufacturer of glass beverage containers, has filed for bankruptcy protection citing its underfunded pension plan as one of the reasons.

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.