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FLEXO Magazine : August 2009
reduction totaling £120 million ($195 million) in the year ending June 30, 2010 which will benefit both cost of goods sold and overheads. The associated cost will result in an exceptional charge of approximately £180 million ($293 million) in the year ended June 30, 2009 and a further exceptional charge of £90 million ($147 million) in the year ending June 30, 2010. Apollo to Reorganize Pliant Apollo Management LP, a private-equity group run by New York financier Leon Black, won court permission to try to reorganize bankrupt packaging maker Pliant Corp. over the opposition of the company. U.S. Bankruptcy Judge Mary Walrath in Wilmington, DE, ruled that creditors should get a chance to vote on Apollo’s reorganization plan as well as the version proposed by Pliant’s managers. Walrath ended Pliant’s exclusive right to restructure the company alone. The ruling sets up a competition for creditor votes between the two proposals. Walrath said that she was likely to accept the creditors’ vote if both plans appear viable, but will consider sending the plans out to creditors after an August. Pliant, based in Schaumburg, IL, sought bankruptcy protection in February, citing rising energy and raw material costs along with the U.S. economic decline. It was the company’s second bankruptcy filing in about four years, court papers show. Apollo, the largest creditor, teamed with smaller, general creditors whose debts aren’t guaranteed by collateral. The firm would pay creditors with cash, stock in a new company and new secured notes. The most senior creditors would get $89 million in cash and $236 million in new first-lien notes. General unsecured creditors would get 17.5 percent of what they are owed in cash under the Apollo plan. Creditors, who hold $393 million in secured notes, opposed Apollo’s plan, according to court documents. Pliant’s plan would give all the new stock to the secured note holders. Other creditors, including the holders of $262 million in second-lien notes, and unsecured creditors would receive warrants to buy new stock. “G” Lacks Force The Wall Street Journal is reporting that a high-profile makeover of PepsiCo’s Gatorade sports drink is on www.flexography.org August track despite recent weak sales, and the consumer product company (CPC) giant plans to introduce an array of new beverages to appeal to consumers who have drifted away from the powerhouse brand. In an interview, PepsiCo’s Americas Beverages chief Massimo d’Amore said that a new marketing campaign in which PepsiCo replaced the drink’s famous name on its label with a big letter “G” and shrunk its signature lightning bolt is proceeding “fully in line with our plan.” Internal research conducted by the company shows that the “G” campaign scores high in “the coolness factor,” he said. In the first six months of this year, sales volume dropped 17.5 percent, according to estimates from Beverage Digest. That caused Gatorade to lose 4.5 percent in share of the sports drink market, but the brand still dominates the category with a 75 percent share. Soft beverage sales in the Americas and currency fluctuations weighed on the company’s secondquarter profit of $1.66 billion, down 2 percent from $1.7 billion. D’Amore is leading a broad beverage re-branding effort, which has meant repackaging 1,000 products and revamping advertising for some of the biggest brands, including Gatorade and Pepsi-Cola. He said overall the effort has been a big success, but acknowledged bumps along the way. PepsiCo dropped new packaging for Tropicana juice in February after consumers complained about the generic-looking carton that replaced the familiar picture of an orange with a straw. n 2009 FLEXO 17