American Pad & Paper Signs Definitive Agreement for Sale of Williamhouse Division.Business Editors DALLAS--(BUSINESS WIRE)--Aug. 15, 2000 American Pad & Paper Company (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AMPPQ) (AP&P) announced today that it has signed a definitive sale agreement with Saratoga Partners for the assets of its Williamhouse division. This agreement follows the Letter of Intent signed with Saratoga on July 17. The sale is subject to a number of conditions including 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. As previously announced, AP&P has been pursuing the sale of its various business assets in order to reduce debt. On May 9, AP&P concluded the sale of its Chicago-based Creative Card division to Taylor Corporation and on August 2, announced a definitive sale agreement with an affiliate of American Tissue Inc. for the sale of its Ampad and Forms divisions. 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 Forms. AP&P has been operating under Chapter 11 protection since January 10, 2000 and has secured debtor-in-possession (DIP) financing adequate for its operations while in Chapter 11. Company revenues in 1999 were $573 million, additional information is available on the Company's Web site at http://www.americanpad.com. Saratoga Partners, a New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of based Merchant Bank, founded in 1984, has led buyout and private equity investments in 28 companies with an aggregate acquisition value exceeding $3.3 billion. Saratoga's investments have included Koppers Industries, CapMAC, Formica Corporation and telecommunications related companies, including EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. Data Center. This release contains forward-looking statements relating to future results of AP&P. 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 American Pad & Paper's financial results are included in AP&P's filings with the Securities and Exchange Commission. |
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