Atlanta, GA - Shelburne Plastics and its operating entities, Plastic Technologies of Vermont, Plastic Technologies of Maryland, and Plastic Technologies of New York, entered into an asset purchase agreement with Consolidated Container Company as the “stalking horse” bidder, pursuant to which CCC has agreed to acquire substantially all of the Sellers' assets and certain liabilities. The sale will allow the Shelburne plants to emerge under CCC with the strong operational and financial backing of a new owner with substantial expertise in the rigid plastic packaging industry.
The Asset Purchase Agreement is subject to a number of closing conditions, including, among others, (i) the approval by the U.S. Bankruptcy Court for the District of Vermont (“Bankruptcy Court”) in the Chapter 11 Filing commenced by the Company (ii) the accuracy of representations and warranties of the parties and (iii) material compliance with the obligations set forth in the Asset Purchase Agreement.
The asset purchases pursuant to the Asset Purchase Agreement are expected to be conducted under the provisions of Section 363 of the Bankruptcy Code and will be subject to proposed bidding procedures and receipt of a higher and better bid at auction (the “Auction”). Upon entry by the Bankruptcy Court, the bidding procedures order will provide that CCC is the “stalking horse” bidder for the assets identified in the Asset Purchase Agreement.
Shelburne will continue operating its business without interruption during the sale period. All of the company's manufacturing plants will remain open, and all manufacturing teams will continue. The company remains confident in its existing pipeline of orders. Shelburne maintains relationships with some of the top customers in the Northeast.
“The sale and filing are necessary next steps to continue long term supply to Shelburne’s customers,” said Gene Torvend, Chairman and CEO of Shelburne. “We are grateful to our outstanding team of employees, partners and suppliers who have worked with us through this transition. We are pleased to have attracted a strong operational and financial owner for the business, and we hope to complete the sale swiftly to make the process as seamless as possible.” While CCC has agreed to serve as the “stalking horse” bidder for a Section 363 sale process, the company is asking the Bankruptcy Court for a schedule to complete the sale process in about 30 days. Jeffrey Greene, President and CEO of CCC, said, “Shelburne has a very good reputation in the marketplace for service, quality and doing business the right way. We’re excited to merge Shelburne’s operations and skilled workforce with CCC’s and continue to provide customers with exceptional service and high quality products.”
Customers should see no changes while the company completes a sale. The company expects to have adequate liquidity to operate the business throughout the period. Shelburne does not intend to reduce its workforce as a result of the filing, and employees will continue to work their usual schedules and receive their standard compensation and benefits, pending customary Bankruptcy Court approval. Shelburne is being advised by Obuchowski & Emens-Butler as legal counsel. CCC is being advised by Alston & Bird as legal counsel.
