GE Capital Provides $75 Million Debtor-in-Possession Financing to Caraustar Industries, Inc.

GE Capital, Restructuring Finance today announced it provided a $75 million debtor-in-possession (DIP) credit facility to Caraustar Industries, Inc., one of North America's largest integrated manufacturers of 100% recycled paperboard and converted paperboard products. The loan will be used for working capital needs as the company restructures under Chapter 11.

Caraustar was founded in 1938 and is based in Austell, Georgia. In 2008, Caraustar had approximately $820 million in revenues. Caraustar is comprised of four business groups: Mill Group, Consumer Packaging, Industrial Packaging and Recovered Fiber Group. Caraustar serves the four principal recycled boxboard product end-use markets: tubes and cores; folding cartons; gypsum facing paper and specialty paperboard products.

“GE’s restructuring expertise and ability to prearrange and structure a DIP facility that rolls into a Plan-of-Reorganization facility provided us with the certainty we were seeking in this challenging environment,” said William A. Nix, III, Vice President, Finance and Chief Accounting Officer of Caraustar Industries.

“GE's restructuring finance expertise, industry acumen and ability to deliver a fully underwritten solution provides borrowers with smarter liquidity to help execute their turnaround plans," said Rob McMahon, managing director of GE Capital, Restructuring Finance.

In 2008, GE Capital was the number one DIP lender by volume with approximately $2 billion committed on 21 deals. To date in 2009, the Restructuring Finance business has led 9 DIP financings providing approximately $900 million.

About GE Capital, Restructuring Finance

GE Capital, Restructuring Finance is a leading provider of senior secured loans to distressed companies supporting Chapter 11 filings, plan-of-reorganizations and out-of-court restructurings. Visit www.gelending.com/clnews.

GE Capital offers consumers and businesses around the globe an array of financial products and services. GE (NYSE: GE) is Imagination at Work - a diversified technology, media and financial services company focused on solving some of the world's toughest problems. For more information, visit the company's Web site at www.ge.com.