American Pad & Paper Receives Approval of First-Day Orders in Connection With Voluntary Reorganization Under Chapter 11.Business Editors DALLAS--(BUSINESS WIRE)--Jan. 19, 2000 American Pad & Paper Company (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: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 received 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. approval to, among other things, pay employee wages, salaries and benefits during its voluntary reorganization under Chapter 11. The Court also approved interim debtor-in-possession (DIP) financing for immediate use by the Company for its day-to-day operational needs. As previously announced, AP&P has received a commitment for $65 million of DIP financing from a group of its current bank lenders. "I am pleased with the progress made in the Bankruptcy Court and with the support shown by our banking group to arrange immediate interim DIP financing," said James W. Swent III, Chief Executive Officer. "We now have the required financing in place to purchase and pay for 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. from our suppliers as we move forward. "I am also appreciative of the overwhelming support we have received from our major vendors as we begin the reorganization process," stated Mr. Swent. "With our first-day motions approved and our interim DIP financing in place, the Company can continue to provide our customers the products and service levels they have come to expect. The Williamhouse sale process is on track and moving forward. Staying focused on these activities will enable American Pad & Paper to maximize the value of the business for all its stakeholders." 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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