Caraustar's lenders allow more time to decide on notes refinancing

By Sara Rosenberg

New York, May 1 - Caraustar Industries Inc. amended its credit facility, deferring until May 8 the required notification to lenders on how its 7.375% senior notes are going to be refinanced, according to a news release.

The notes mature on June 1.

The company said that given the significant constraints in the credit markets, it believes it would be unable to refinance the notes prior to maturity. Therefore, continuing as a going concern is dependent on the company reaching satisfactory agreement with noteholders on a restructuring.

In addition, as of April 30, the company is obligated to apply cash receipts to any outstanding balance drawn on its revolver. However, there is no balance drawn on the revolver and the company believes that it has sufficient cash on hand to fund current operations.

Caraustar is an Austell, Ga.-based manufacturer of 100% recycled paperboard and converted paperboard products.

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