News

Chesapeake has 45 days in which to report how it plans to comply with The New York Stock Exchange (NYSE) continued listing standards.

The firm has been informed by NYSE Regulation that it is not in compliance with these standards because over a 30-day trading period its total market capitalisation was less than $75m.

Earlier this month Chesapeake announced a refinancing plan to address the forthcoming maturity of its bank credit facility and general liquidity needs.

The proposed refinancing plan is expected to fully repay the company's existing $250m (£126m) senior-secured credit facility and to exchange the company's outstanding subordinated notes for new debt and equity securities.

Chesapeake president and chief executive Andrew Kohut said the refinancing plan would provide "the financial flexibility" the company needed to execute its "long-term business plan" and he was "confident of success".

In December 2007, Chesapeake agreed with its lenders to amend certain covenants of its senior revolving credit facility.

Last month the firm said it would increase sale prices by around 10% because it was being "squeezed from all sides" by rising raw material and energy prices.

Chesapeake supplies folding cartons, leaflets and labels, as well as plastic packaging. It has 45 locations in Europe, North America, Africa and Asia and employs approximately 5,400 people worldwide.