Russell-Stanley Holdings, Inc.

October 28, 2005 10:39 ET

Hunter Drums Receives Court Approval for Sale of Assets to Mauser Canada Ltd.

BURLINGTON, Ontario--(CCNMatthews - Oct 28, 2005) -

Hunter Drums Limited ("Hunter Drums"), a wholly-owned subsidiary of Russell-Stanley Holdings, Inc., announced that it received approval yesterday from the Ontario Supreme Court for the sale of substantially all of its assets to Mauser Canada Ltd., a Canadian affiliate of Mauser-Werke GmbH & Co. KG ("Mauser"), and One Equity Partners.

In a separate announcement issued on October 25, 2005, Russell-Stanley Holdings, Inc. ("Russell-Stanley") announced that on October 24, 2005, after only approximately two months in Chapter 11, the U.S. Bankruptcy Court for the District of Delaware confirmed the prepackaged plan of reorganization of Russell-Stanley and certain of its subsidiaries (the "Plan"). The Plan provides, among other things, for the sale of substantially all of the assets of Russell-Stanley and certain of its subsidiaries to a U.S. affiliate of Mauser and One Equity Partners. The Plan is expected to become effective, and the sale of the assets of Russell-Stanley and certain of its subsidiaries, including Hunter Drums, is expected to close within the next ten days after satisfaction or waiver of various conditions to closing.

Hunter Drums has not been part of Russell-Stanley's Chapter 11 proceedings and has initiated its own ancillary proceedings in Canada. During the Canadian proceedings, Hunter Drums has paid its creditors in the ordinary course of business and will continue to do so until the sale of its business to Mauser Canada Ltd.

"This week's announcements and our combination with Mauser would not have been possible without the strong support of our creditors, vendors, customers and employees, including those associated with Hunter Drums. We are very appreciative of their continued confidence during this process," said Ronald M. Litchkowski, President and Chief Executive Officer of Russell-Stanley. "We are now looking forward to a new era in our business as we become part of an organization that is a global leader in industrial packaging."

About Russell-Stanley

Russell-Stanley Holdings, Inc. is North America's largest plastic drum manufacturer, second largest steel drum manufacturer, and a leading industrial container supply chain management company. Information on the company can be found at www.russell-stanley.com.

About Mauser

Mauser-Werke GmbH Co. KG is a global leader in industrial packaging, with its headquarters in Bruehl, Germany. More information on the company can be found at www.mauser-werke.com.

Contact Information

  • Brunswick Group
    Ellen Barry, 212-333-3810