Constar International, one of the largest suppliers of PET containers for conventional applications in soft drinks and water throughout North America and Europe, has voluntarily filed Chapter 11 bankruptcy. In accordance with Marketplace Rules 4300, 4450(f) and IM-4300, the company’s common stock has been delisted from the Nasdaq Stock Market, and the company has proposed a plan of restructuring.
“We intend to continue to operate as usual during the restructuring process with minimal disruption to business and our constituencies,” says Michael Hoffman, president and CEO of Constar.
The company expects that the restructuring will be completed by early spring. As of now, all of the company’s global operations are operating on schedule, and it intends to continue fulfilling customer orders.
Rigid plastics in general have taken a hit recently. When petroleum prices inflated earlier in 2008, rigid plastics suppliers lost customers. Since prices have recently deflated, those suppliers have to regain customers and recoup their losses. According to Carole Kluth, plastics analyst with Applied Market Information, the 2008 closures of RPC and Huhtamaki rigid plastic production sites show the pressures currently facing the rigid plastics sector.