Chesapeake Corp. files for bankruptcy protection

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RICHMOND, Va. (AP) - Specialty packaging company Chesapeake Corporation has filed for Chapter 11 bankruptcy protection and plans to sell itself to a group of investors for about $485 million.

The company's stock closed at 6 cents yesterday, well off the $5.61 it traded at a year ago.

Chesapeake's shares were delisted from the New York Stock Exchange in October and are now traded over the counter.

Last month, Chesapeake reported a $277.1 million loss for the nine months ended September 28.

The company has been cutting jobs and realigning operations in an effort to foster growth and reduce costs.

The group of investors buying Chesapeake include Irving Place Capital Management LP and Oaktree Capital Management LP. The deal is expected to close during the first quarter, subject to court approval.