Business News

Court Confirms Caraustar Reorganization Plan

Thursday 06. August 2009 - Caraustar Industries, Inc. (OTC: CSARQ) announced that the United States Bankruptcy Court for the Northern District of Georgia (the "Court') has confirmed the Debtors' First Amended Joint Plan of Reorganization dated June 30, 2009, as supplemented by the Plan Supplement dated and filed July 17, 2009, and the Annex to the Plan Supplement dated and filed July 29, 2009 (the "Plan"). The Debtors filed for bankruptcy on May 31, 2009.

The Plan was approved by all impaired classes, including 94.9% of the holders of the Senior Notes and 90.1% of equity holders who voted for the Plan.

Michael J. Keough, president and chief executive officer, stated: “We are appreciative of the support of our customers, employees, vendors, advisors and other stakeholders, whose collective support helped us navigate these Court proceedings efficiently. We expect to emerge from these Court proceedings with a strong balance sheet, the Caraustar brand name intact and the ability to continue to focus on becoming first choice for each and every one of our customers.”

The Plan will become effective and Caraustar will emerge as a private company once all conditions to the Plan are satisfied.