Crown Vantage Files for Chapter 11 Reorganization; Receives $100 Million Debtor-in-Possession Financing.Business Editors CINCINNATI--(BUSINESS WIRE)--March 15, 2000 Crown Vantage (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:CVAN CVAN Attack Aircraft Carrier (Nuclear Propulsion) CVAN CINCPAC Voice Alert/Automated Net ) announced today that it has filed voluntary petitions in the U.S. 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. for the Northern District of California, Oakland Division, to reorganize under Chapter 11 of the U.S. Bankruptcy Code Bankruptcy Code may refer to:
Crown Vantage's operations in the U.K. are not included in the filing. This allows the U.K. mills to continue to operate apart from any Court supervision. There should be no change in their day-to-day business. To ensure that it has the capital necessary to continue operating its business as normal during the restructuring process, the Company said that it has arranged for $100 million in debtor-in-possession (DIP) financing from Morgan Guaranty Trust Company of 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 as administrative agent, The Chase Manhattan Bank The Chase Manhattan Bank, now part of JPMorgan Chase, was formed by the merger of the Chase National Bank and the Bank of the Manhattan Company in 1955. The bank is headquartered in New York City. as syndication agent, and a group of institutional lenders. Morgan Guaranty is the administrative agent for the Company's current pre-petition credit facility. The Company has sought and expects to receive the Court's approval to pay employee salaries, wages and benefits without interruption. The DIP financing will enable the Company to pay for the post-petition 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 operations and administration necessary to meet customer demands. Borrowings under the DIP facility are subject to Court approval. "After evaluating a number of alternatives for recapitalization, we chose to implement our restructuring through a Chapter 11 filing because it provides the most appropriate and efficient means by which the Company can resolve its long-term financial problems and reduce indebtedness," said Robert Olah, president and chief executive officer of Crown Vantage. "While under the protection of the Bankruptcy Court, we now have the flexibility to restructure our pre-petition obligations and gain access to additional working capital that should ensure that day-to-day operations are minimally impacted." Crown Vantage is one of the world's leading manufacturers of value-added papers for printing, publishing and specialty packaging. With nine mills internationally, the Company has capacity to manufacturer more than 750,000 tons of specialty papers per year. The Company's diverse products are tailored for the special needs of target markets. End users include specialty magazines and catalogs, financial printing and corporate communications, packaging and product labels, coffee filters and disposable medical garments - and hundreds more. For more information, visit www.crownvantage.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement: This news release contains certain forward-looking statements concerning Crown Vantage's positioning for the future. As required by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, the company advises that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those stated or inferred. These could include the failure of Crown Vantage to improve financial results or to maintain liquidity; the ability of the company to obtain liquidity; the ability of the company to close on a recapitalization; the inability of the company to successfully amend debt covenants for fiscal 2000; sudden marketing changes in product pricing or the cost of raw materials; failure of the company to successfully implement its value-added marketing strategy or other uncertainties listed from time to time in the company's filings with the SEC. |
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