Appvion files Chapter 11
Company operates mill in Roaring Spring
APPLETON,Wis. –Appvion Inc. — which has a mill in Roaring Spring — announced Sunday that it and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code.
The filing was made in the U.S. Bankruptcy Court in Delaware 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 Bankruptcy 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, according to a company press release.
“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 deliver the company and enhance our liquidity,” said Kevin Gilligan, Appvion CEO, in a statement. “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.”
Employees should not notice any difference, said Bill Van Den Brandt, Appvion spokesman.
“The entire company is employee-owned. The financial restructuring process will have little impact on how the company does business. Employees throughout the company will see no change in their day-to-day roles and responsibilities, and they will continue to receive wages and benefits without interruption,” Van Den Brandt said.
Gilligan said the Chapter 11 process itself will have little impact on how Appvion does business.
The company will work closely with its customers and vendors to ensure that ongoing obligations are met and that production and delivery are uninterrupted.
Appvion produces thermal, carbonless, security, inkjet, digital specialty and colored papers. Headquart-ered in Appleton, Wis., Appvion operates coating and converting plants there and in West Carrollton, Ohio, and a pulp and paper mill in Roaring Spring.