788983--11/21/2006--PORTOLA_PACKAGING

related topics

{debt, indebtedness, cash}

{acquisition, growth, future}

{cost, regulation, environmental}

{regulation, government, change}

{system, service, information}

{operation, international, foreign}

{property, intellectual, protect}

{personnel, key, retain}

{competitive, industry, competition}

{condition, economic, financial}

The covenants in our senior secured credit facility and the indenture governing our 8 1 / 4 % Senior Notes impose restrictions that may limit our operating and financial flexibility. Our 8 1 / 4 % Senior Notes are effectively subordinated to all of our secured debt, and if a default occurs, we may not have sufficient funds to fulfill our obligations under the notes. We may be unable to purchase our 8 1 / 4 % Senior Notes upon a change of control. Risks related to our business We have completed the integration of PTI with the beverage product elements of our company, and we may not realize the anticipated benefits of this acquisition on a timely basis or at all. We may be subject to pricing pressures and credit risks due to consolidation in our customers industries, and we do not have long-term contracts with most of our customers. We are subject to competition in our markets. We are subject to the risk of changes in resin prices. We are capital constrained, which has reduced our ability to make capital expenditures and has limited our flexibility in operating our business. The integration of future acquisitions may result in substantial costs, delays and other problems. We depend on new business development, international expansion and acquisitions. Difficulties presented by non-U.S. economic, political, legal, accounting and business factors could negatively affect our interests and business efforts Adverse weather conditions could adversely impact our financial results. We are subject to risks that our intellectual property may not be adequately protected, and we may be adversely affected by the intellectual property rights of others. Defects in our products could result in litigation and harm our reputation. Our customers products could be contaminated through tampering, which could harm our reputation and business. Changes to government regulations affecting our products could harm our business. Our business may be adversely affected by compliance obligations or liabilities under environmental, health and safety laws and regulations. We depend upon key personnel.

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788983--11/21/2006--PORTOLA_PACKAGING_INC