American Pad & Paper Files for Protection Under Chapter 11; $65 Million of Dip Financing Committed.Business Editors DALLAS--(BUSINESS WIRE)--Jan. 14, 2000 American Pad & Paper Company (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AMPP AMPP Apache, MySQL, PHP and Perl AMPP Actual Medicinal Product Pack (UK) AMPP Advanced Materials and Processing Program ) (AP&P) announced today that it has filed a petition in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. in Delaware to convert the involuntary Chapter 11 petition filed by its bondholders on January 10, 2000 to a voluntary Chapter 11 proceeding under the Federal Bankruptcy Code Bankruptcy Code may refer to:
LLC - Logical Link Control as advisors to assist it in this process. To ensure liquidity throughout this period, AP&P has received a commitment for $65 million of debtor-in-possession (DIP) financing from a group of its current bank lenders. This commitment of DIP financing exhibits the continuing support of the Company's existing bank group. The Company expects the DIP financing to be approved by the court at a hearing early next week. Funds will then be available to the Company to fulfill future obligations associated with operating its business during the bankruptcy. AP&P said that the Chapter 11 filing should have little impact on customers and employees. The Company has sought and expects to receive the Court's approval to continue payment of employee salaries, wages and benefits without interruption. The DIP financing will enable the Company to pay for the delivery of goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. and continue to build inventory necessary to meet customer requirements. "Our focus throughout this process has been to try to maximize value for all of the Company's stakeholders," stated James W. Swent III, Chief Executive Officer. "While we initially felt that progress was being made in the negotiations with the bank group and bondholders, unfortunately these discussions did not yield a consensual solution. After exploring all available alternatives, we believe that converting the bondholders' involuntary Chapter 11 petition to a voluntary Chapter 11 proceeding presents the most effective means to restructure our debt while safeguarding the interests of all involved. The DIP financing agreement will provide liquidity for our daily operations during the reorganization period and will help to ensure that our customers continue to receive the products and level of service they have come to expect from AP&P." "During the past year, the AP&P team has made good progress in our turnaround initiatives, but our revenue levels have not been sufficient to service our current debt structure," said Mr. Swent. "Our primary suppliers, the paper mills, have continued to provide a high level of support and remain key business partners. We look forward to the continued support of all our stakeholders as we move through this process." American Pad & Paper Co., which invented the legal pad legal pad n. A pad of ruled, usually yellow writing paper that measures 8 1/2 by 14 inches. in 1888, is a leading manufacturer and marketer of paper-based office products in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Product offerings include envelopes, writing pads, file folders, machine papers, greeting cards See e-card. and other office products. The key operating divisions of the Company are Williamhouse, AMPAD, and Creative Card. Company revenues in 1998 were $662 million, additional information is available on the Company's Website at http://www.americanpad.com. This release contains forward-looking statements relating to future results. Actual results may differ significantly from these statements due to risk factors including, but not limited to the following: changing business and economic conditions; changes in customer order patterns, including loss of key customers, order cancellations or reduced sales; price and product competition; manufacturing risks; raw material availability and price changes; excess or obsolete inventory Obsolete Inventory Term that refers to inventory that is at the end of its product life cycle and has not seen any sales or usage for a set period of time usually determined by the industry. This type of inventory has to be written down and can cause large losses for a company. ; the loss of key personnel and new product development, including acceptance of new products. Additional information, which could affect the Company's financial results, is included in the Company's filings with the Securities and Exchange Commission. |
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