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OTCPicks.com Daily Market Movers Digest Midday Report for Wednesday, December 31st CNST, VTSS, DDSS, CBAK, AKRX.

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M2 PRESSWIRE-31 December 2008-OTCPicks.com: OTCPicks.com Daily Market Movers Digest Midday Report for Wednesday, December 31st CNST, VTSS, DDSS, CBAK, AKRX(C)1994-2008 M2 COMMUNICATIONS LTD

RDATE:31122008

Our Stocks to Watch today include Constar International Inc. (Nasdaq: CNST), Vitesse Semiconductor Corp. (OTC: VTSS), Labopharm Inc. (Nasdaq: DDSS), China BAK Battery Inc. (Nasdaq: CBAK) and Akorn Inc. (Nasdaq: AKRX).

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CONSTAR INTERNATIONAL INCORPORATED (NASDAQ: CNST) "Up 78.55% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/CNST.php

Philadelphia-based Constar is a leading global producer of PET (polyethylene terephthalate) plastic containers for food, soft drinks and water. The Company provides full-service packaging solutions, from product design and engineering, to ongoing customer support. Its customers include many of the world's leading branded consumer products companies.

CNST News:

December 30 - Constar International Inc. Receives Support from the Holders of a Majority in Principal Amount of the Subordinated Notes for Plan to Reduce Debt and Annual Interest Expense

Company Files Pre-Arranged Voluntary Chapter 11 Petition To Implement Debt-For-Equity Swap; No Other Creditor Classes Impaired Ongoing Business Relationships With Suppliers, Customers and Employees Not Impacted By Restructuring

Constar International Inc. (Nasdaq: CNST) announced that it has received support from the holders of a majority in principal amount of the Company's Subordinated Notes regarding a debt-for-equity exchange that will reduce the Company's outstanding indebtedness by $175 million and reduce its annual interest expense by approximately $19.3 million. To implement this pre-arranged restructuring, Constar and certain of its subsidiaries today filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court in Wilmington, Delaware.

All of Constar's global operations - including all of its manufacturing and distribution facilities in the U.S. and Europe - are open and operating on normal schedules, and the Company expects to continue to fulfill all customer orders as usual and provide uninterrupted customer service.

Michael Hoffman, President and CEO of Constar, said, "We are pleased to have received support from the holders of a majority in principal amount of our subordinated notes for a pre-arranged and consensual restructuring that significantly improves our balance sheet by eliminating $175 million in debt, reduces our annual cash interest obligations by approximately $19.3 million, and frees up cash to reinvest in our business to support future growth. We intend to continue to operate as usual during the restructuring process with minimal disruption to the business and our constituencies. We intend to pay all of our obligations in full - which includes providing pay and benefits to our employees as usual, honoring all contracts, and paying suppliers in full."

Pursuant to the Company's proposed plan of reorganization, holders of the Subordinated Notes will convert 100% of the face amount of the Subordinated Notes and the full amount of the interest payment due December 1, 2008, which will not be paid, into common stock of the reorganized company. The Company's current equity will be cancelled, but all other creditor classes will be unimpaired. Importantly, all obligations owed by the Company to trade creditors in the ordinary course of business will be paid in full under the plan. The Company anticipates that the restructuring will be completed by early spring of 2009.

Allan Brilliant, partner at Goodwin Procter LLP, counsel to an ad hoc committee of holders of the Subordinated Notes, said, "Our clients support the Company's efforts to deleverage through a debt-for-equity exchange under a plan that proactively fixes the balance sheet and allows the company to realize its full potential."

Christopher Pucillo, Chief Investment Officer of Solus Alternative Asset Management LP, the largest holder of Constar's Subordinated Notes, said, "As the largest holder of Subordinated Notes, we support the deleveraging under the plan. We look forward to working with Constar to consummate the debt-for-equity exchange promptly to allow the Company to maximize its potential prospects going forward."

Constar also announced today that it has received commitments from its existing bank lenders to provide the Company with debtor-in-possession ("DIP") and exit financing of $75 million. The DIP financing will help enable the Company to continue to satisfy customary obligations associated with ongoing operations of its business, including the timely payment of employee obligations, materials purchases, normal operating expenses and other obligations. The $75 million exit financing facility provides for committed financing for the three years following the closing of the DIP financing. In...

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