Business

Portola Packaging, the manufacturer of tamper-evident closures and plastic containers, has filed a petition to reorganise in the United States Bankruptcy Court for the District of Delaware.

The company will reorganise its capital structure to bring it more inline with its current and future operating prospects and provide greater liquidity.

The reorganisation will reduce Portola Packaging's long-term debt by $180m.

Under the agreement all obligations to trade creditors, suppliers, customers and employees in the ordinary course will be unaffected.

Brian Bauerbach, president and chief executive, said: "We are pleased to have achieved such a strong support for consensual restructuring that dramatically improves our balance sheet, reduces our annual cash interest obligations by approximately $15m and enables continued reinvestment in our products and future growth."

The company anticipates completing the reorganisation and emerging from the agreement in mid-October.

Portola Packaging primarily operates in the US, and has operations in Doncaster in the UK, the Czech Republic, China and Mexico.