Constar International Holdings LLC, which is headed into a bankruptcy auction for its assets, yesterday chose an affiliate of Black Diamond Capital Management to finance its bankruptcy after a "mini-auction" urged by the judge presiding over the case, Dow Jones Newswires reported yesterday. Bankruptcy Judge Christopher Sontchi indicated he would approve the new deal with Black Diamond, which bested other existing backers led by Solus Alternative Asset Management LP in a competition for the right to loan money to Constar in chapter 11. The Philadelphia-based maker of plastic containers is putting its assets up for auction, with a $68.5 million buyout offer from an affiliate of Australia's Amcor Ltd. to set a floor price, and strong interest from Michigan's Plastipak Holdings Inc., and Georgia's CKS Packaging.
