Chesapeake Corp. bid procedures to be set next week
Jan 13, 2009 (Richmond Times-Dispatch - McClatchy-Tribune Information Services via COMTEX) -- A federal bankruptcy court judge set Jan. 20 as the date to establish bidding procedures on Chesapeake Corp.'s business units.
The Richmond-based packaging company filed for Chapter 11 bankruptcy protection Dec. 30 and is seeking to sell itself to a group of investment firms if another bidder does not come forward.
Chesapeake sought to establish bidding procedures yesterday, but U.S. Bankruptcy Judge Frank J. Santoro set a final hearing for Jan. 20 after lawyers for the company's unsecured creditors objected that the company was seeking to move the sale process too quickly and that creditors needed more time to review the process and potential options.
The investment firms Irving Place Capital Management LP and Oaktree Capital Management LP have a contract to buy Chesapeake's business units for $485 million unless another buyer emerges.
Chesapeake has its headquarters in Richmond, but most of its business units operate in Europe, where the company makes plastic and paperboard packaging for pharmaceuticals, liquor, candy and other consumer products.
-- John Reid Blackwell
