Molded Container Corp. intends to file a plan of reorganization with the U.S. Bankruptcy Court in Portland, Ore., by the end of June.
The Portland firm filed Feb. 25 for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code, but has made progress toward a recovery.
``The recession caught up with us,'' President Melvin Ellis said by telephone, but ``we have lost none of our customers. We are shipping close to 100 percent on time.''
Court filings said Molded Container owed $5.9 million from a $7.3 million credit agreement with the Portland office of KeyBank National Association, a unit of Cleveland-based KeyCorp. Molded Container is operating under a cash collateral order from the court, said John Crawford, a Portland lawyer representing KeyBank.
As of May 28, creditors had filed 109 claims. General Electric Capital Business Asset Funding Corp. said it was owed nearly $1.3 million. GE financed Molded Container equipment purchases, including Sumitomo microprocessor-controlled hydraulic injection molding machines and Maguire materials-handling systems.
``I think we will emerge [from Chapter 11] around Labor Day,'' Ellis said. ``We are enjoying positive cash flow. All of our vendors are working with us.''
Ellis expects the court to approve the reorganization plan. ``I don't think it will be controversial,'' he said. ``We are ahead of the cash plan we filed with the court.''
Molded Container wants to recapitalize its debt with a lender other than KeyBank.
``We have two offers from new lenders,'' Ellis said. ``I have put half a million of cash into it.''
Molded Container makes food packaging at a Portland site that employs 122, and specialty promotional products in a Florence, Ky., plant employing 36. The firm had 2001 sales of about $16 million.