U.S. Packaging Company Files For Bankruptcy Protection
By Canadian Packaging StaffGeneral Inc. Specialty Packaging Holdings
Specialty Packaging Holdings, Inc. (SPH) of Lewisburg, TN, together with its direct and indirect wholly-owned subsidiaries, The Specialty Packaging Group, Inc., Cosmetics Specialties, Inc., Cosmolab, Inc., Cosmetics Specialties East, LLC, and Cosmolab New York, Inc. has announced the filing of voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.
SPH, through its subsidiaries, is a global developer and manufacturer of color cosmetics, and will continue to conduct business as usual during the Chapter 11 proceedings while it sells its assets. As part of the Chapter 11 filing, the SPH companies have sought emergency relief to ensure the continued payment of employee wages and benefits and the ability to honor existing customer programs. In connection with the Chapter 11 filing, SPH announced that it has arranged a debtor-in-possession financing facility with Bank of America which will be presented to the court for approval.
SPH also announced that certain of the SPH Companies have entered into an agreement to sell substantially all of the operating assets of the SPH companies to All4 Cosmetics, Inc., a subsidiary of Schwan-STABILO Cosmetics GmbH & Co. KG. All4 is prepared to continue business operations in Lewisburg, continuing Cosmolab’s long history as a leader in the manufacture of color cosmetics and cosmetic pencils.
According to Michael Musso, chief restructuring officer for SPH, “Schwan-STABILO is one of the most respected companies in the industry. We believe this acquisition will strengthen both companies and provide their customers with the highest quality and most innovative products available. We are also very happy that All4 intends to maintain the operations in Lewisburg continuing to serve our valued customers without interruption.”
The sellers will seek Court approval of a process to market these assets, and All4’s offer is subject to competitive bidding by third parties during the Chapter 11 auction process.