Appvion (f/k/a Appleton Papers) and five affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 17-12082. The Company, which manufactures paper products, is represented by Stuart M. Brown of DLA Piper. The Company announced that the filing was initiated in order to “facilitate a balance sheet restructuring and better position the business for long-term growth and success.”
The Company expects to continue operations as usual and has obtained a commitment for $85 million in new debtor-in-possession financing from a group of its first lien lenders. Subject to Court approval, this financing, combined with cash generated by the Company, is expected to provide more than adequate liquidity to support ongoing operations during the process.
Kevin Gilligan, C.E.O. of Appvion, comments, “We thoroughly explored various alternatives to address our debt and have been engaged in constructive discussions with our lenders regarding sponsorship of a plan to delever the Company and enhance our liquidity. While those discussions are active and continuing, we determined that pursuing a restructuring through Chapter 11 is the best path forward for Appvion and our stakeholders. We believe this process will result in a sustainable capital structure for our business.”
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