Constar granted court OK to auction obsolete personal property assets

By Jennifer Lanning Drey

Savannah, Ga., March 11 - Constar International Inc. received court approval to auction personal property assets located at six of its facilities, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

When requesting approval to auction the assets, Constar said it was looking to sell personal property assets that are no longer needed or obsolete at the facilities.

Constar said it has entered in to agreements with Meadoworks, LLC and Platinum Assets Services Inc. to market and sell the assets. Under the agreements, Constar will receive a guaranteed $2.1 million for the personal property assets.

The company believes actual revenue from the proposed assets could be as much as $3 million.

Constar also said it believes it will save more than $10 million in cash, based on its ability to vacate the facilities and reject the property leases where appropriate without having to incur the costs of removing the assets.

Constar, a Philadelphia-based maker of polyethylene terephthalate food and beverage containers, filed for bankruptcy on Jan. 11. The Chapter 11 case number is 11-10109.

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