Atlantis Plastics declares bankruptcy; to sell film assets to AEP Industries

-- Converting Magazine, 8/17/2008

Atlanta-based shrink-film maker Atlantis Plastics, Inc. filed for Chapter 11 bankruptcy on Aug. 10. As part of its reorganization, it agreed to sell substantially all of the assets of its Plastic Films business to AEP Industries, Inc. of The Netherlands. 

The proposed sale is subject to higher and better offers, bankruptcy court approval and other conditions, Atlantis says. The company anticipates closing on the deal in October 2008.

Atlantis also announced that it has reached an agreement with a consortium of lenders led by GE Business Financial Services Inc. for a $26.5 million post-petition financing facility which will provide the company with sufficient working capital and financial resources to continue normal business operations at all of its facilities.

Atlantis Plastics is a converter of polyethylene stretch and custom films and molded plastic products. It installed a 7-layer VAREX® blown-film extrusion line from Windmoeller & Hoelsher Corp. in 2006.