Constar International (Philadelphia, Pennsylvania / USA; www.constar.net) filed for reorganisation under Chapter 11 in the US Bankruptcy Court in Wilmington, Delaware on 30 December 2008, following agreement with its shareholders to restructure the business. The PET bottle producer said that it has received support from the holders of a majority of the company's subordinated notes in relation to a debt-for-equity exchange that will reduce its outstanding debt by USD 175m and reduce its annual interest expense by around USD 19.3m.

Constar said that all of its global operations – including its manufacturing and distribution facilities in the US and Europe – are open and operating on normal schedules, and that it expects to continue to fulfil all customer orders as usual and provide uninterrupted service.

Michael Hoffman, president and CEO of Constar, said that the business intends continue to operate as usual during the restructuring process with minimal disruption. “We intend to pay all of our obligations in full – which includes providing pay and benefits to our employees as usual, honouring all contracts, and paying suppliers in full,” he added. Constar anticipates that the restructuring will be completed by early spring of 2009.