Constar successfully emerges from Chapter 11

04-Jun-09

Constar International Inc., a leading global producer of PET (polyethylene terephthalate) plastic containers for food and beverages, announced that the Company and its affiliated debtors completed their financial restructuring and successfully emerged from Chapter 11 on Friday, May 29, 2009. The reorganization was completed approximately five months from the filing of their Chapter 11 petitions on December 30, 2008. In conjunction with its emergence from Chapter 11, Constar also announced that it had converted its debtor-in-possession financing into an exit facility to provide the Company with ongoing liquidity. As required by the Plan approved by the Bankruptcy Court, Constar's old common stock was cancelled in connection with the emergence from Chapter 11. Holders of the old common stock will not receive a distribution of any kind and no further transfers will be recorded on the Company's books. Holders of the $175 million of Constar's pre-Petition Subordinated Notes will convert 100% of their face amount into new common stock of the reorganized Company. This common stock is initially expected to trade over-the-counter. The Company estimates that following the distribution of the new shares, there will be approximately 1.75 million shares of the new common stock outstanding (exclusive of approximately 195,000 additional shares reserved for issuance under equity incentive plans).