Nonmetallics

Caraustar Industries Inc., based in Austell, Ga., has reached agreement with majority holders of about 83 percent of its notes that were due June 1, 2009, as well as a majority of holders of its notes that matured on May 1, 2010, on the terms of a cooperative financial restructuring that would reduce the company’s debt obligations by approximately $135 million.

Under the plan, holders of outstanding shares of Caraustar’s common stock will receive their pro rata share of $2.9 million, or approximately 10 cents per share. In addition, the plan contemplates the exchange of the company’s existing Senior Notes for an aggregate of $85 million in new Senior Secured Notes and 100 percent of the common stock of the reorganized company. The reorganized company is expected to emerge as a private entity with Wayzata Investment Partners LLC becoming the company’s controlling shareholder.

In conjunction with the restructuring, Caraustar has secured credit approval from General Electric Capital Corp. for a $75 million senior secured debtor-in-possession (DIP) revolving credit facility converting at emergence from bankruptcy into a $75 million senior secured revolving credit facility, the latter to become effective upon confirmation of the plan by the court.

The company and its domestic subsidiaries filed their voluntary Chapter 11 petitions in the United States Bankruptcy Court for the Northern District of Georgia May 31, 2009.