Consolidated Container extends tender for 10¾%, 10 1/8% notes

By Jennifer Chiou

New York, March 23 - Consolidated Container Co. LLC announced the extension of the tender offer for its $207 million principal amount at maturity of 10¾% senior secured discount notes due 2009 and $185 million of 10 1/8% senior subordinated notes due 2009.

The offers now end at 11:59 p.m. ET on March 27, pushed back from March 22.

As of 11:59 p.m. ET on March 22, the company received tenders from holders of 98.9% of its 10¾% notes and 95.4% of its 10 1/8% notes.

On March 9, the company said it will execute supplemental indentures after having received tenders from holders of a majority of notes.

The Atlanta-based manufacturer of rigid plastic containers previously extended the consent date to 5 p.m. ET on March 9 from March 8.

The company also previously increased the payout to $1,016.88 from $1,014.00 for each $1,000 principal amount of 10 1/8% notes. The payout includes a consent payment of $30.00 for those who tendered by the early deadline.

Consolidated Container is soliciting consents to eliminate substantially all of the restrictive covenants and significantly amend certain events of default and related provisions in the note indentures.

On Sept. 21, 2006 the company received a notice of default from the indenture trustee for its 10 1/8% notes for failure to provide quarterly financial information.

All of the information requested is included in the company's 10-Q for the quarter ended June 30, 2006, which the company previously said was delayed as a result of accounting implications related to supply agreements.

Consolidated Container had 60 days to cure the default by providing the required financial information to the trustee and noteholders.

At the time, the company said it intended to provide the required financial information to the trustee and the noteholders before the Nov. 13 deadline.

The tender offer is conditioned upon the closing of new senior secured credit facilities.

Lehman Brothers Inc. is the dealer manager and solicitation agent (800 438-3242 or call collect 212 528-7581). D.F. King & Co. Inc. is the information agent (800 758-5378).

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