News

Major Chesapeake shareholder Edelmann has told Packaging News that further investment in the carton manufacturer has been put on hold at present.

Edelmann chief executive Dierk Schröder said that due to the "current unstable situation of the financial markets, decisions on further engagement and options by Edelmann will not be made at present".

He confirmed that Edelmann currently holds 13.5% of the shares in Chesapeake Corporation, as announced on September 2008.

Chesapeake filed a regulatory statement last week (13 November) that stated that the company's restructuring activities may require it to seek the protection of US bankruptcy laws, for example Chapter 11.

Chapter 11, which is not the same as insolvency, is a legal process in the US that allows companies to operate as usual as the company implements measures to address its financial problems.

A spokesman from the company said that if the process went ahead, "which is one of a number of possibilities at the moment", then Chesapeake's operating companies in Europe and elsewhere should continue to operate on a normal basis.

Chesapeake has 47 operations across Europe, North America, Africa and Asia, and employs approximately 5,500 people worldwide.