Appvion to pay wages, honor customer programs
Bankruptcy court approved motions
APPLETON, Wis. — Appvion Inc., which operates a paper mill in Roaring Spring, has received approval from the U.S. Bankruptcy Court in Delaware of all of the first-day motions related to its Chapter 11 filing.
Collectively, the orders issued by the Bankruptcy Court will help ensure that the company continues operating its business in the ordinary course during its restructuring process.
“We remain focused on operating our business as usual and serving our customers’ needs as we continue constructive discussions with our lenders on an expedited restructuring and emergence,” said Kevin Gilligan, Appvion CEO, in a statement.
Appvion received approval to access $65 million of the $85 million of new debtor-in-possession financing on an interim basis. This financing, combined with cash generated by the company, will support ongoing operations. The company also received approval to, among other things, pay employee wages and benefits and honor customer programs.
Appvion intends to pay vendors in the ordinary course for goods and services provided after the filing date and expects production and delivery of products to customers to continue uninterrupted.