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Consumers Packaging Inc. filed for bankruptcy yesterday, the last move of a company that until recently made 85 per cent of all the glass bottles in Canada.

Richard Harris, senior vice-president of KPMG Inc., the trustee-in-bankruptcy, said the filing was "largely a technical formality" as he cleans up the last details of the Toronto-based company.

Most of the assets of Consumers Packaging were sold to Owens-Illinois Inc. of Toledo, Ohio, last September, leaving little more than a warehouse in Hamilton and some cash.

That cash will be distributed to the unsecured creditors at a meeting in June.

Mr. Harris said the unsecured creditors are owed about $400-million. They are to receive between $25-million and $30-million, about 7 cents on each dollar owed.

The banks were secured creditors. They were recently paid their debts in full, a sum Mr. Harris said amounted to about $60-million. The bondholders are to receive about $115-million, or about 50 cents on the dollar.

Mr. Harris said there are no employees left at Consumers Packaging. Most of them were hired by Owens-Illinois when it bought the Canadian glass-manufacturing business and its six plants for $235-million.

Owens-Illinois agreed to hire the employees at their current wages and to assume all pension and benefit obligations. It also agreed to honour all of Consumers Packaging's bottle supply contracts.

Consumers Packaging filed for protection under the Companies' Creditors Arrangement Act last May saying it was suffering from a rapid escalation of energy costs.

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