FiberMark, Inc. received approval to implement cost reduction program

Jul 21, 2005. /Lesprom Network/. FiberMark, Inc. announced that it has received approval from the U.S. Bankruptcy Court, District of Vermont, to implement its cost reduction program. As previously reported, this initiative is expected to result in annual net savings of $10 million beginning in 2006. Also at today's hearing, the Court approved lender fees in connection with the company's anticipated exit financing facility. According to John Hanley, Vice President and Chief Financial Officer, this is an important step forward toward the company's emergence from chapter 11, and will enable the company to finalize the financing necessary to implement its amended plan of reorganization and fund its post-emergence operations. The Court has also stated that it will expedite the schedule of proceedings for determining whether to unseal the report recently filed by an independent examiner with respect to certain issues involving the official creditors committee. In conjunction with the new schedule, the Court today said that it will consider setting a hearing date on the company's Disclosure Statement related to its amended plan of reorganization of September 2, 2005, which will allow for a determination of the unsealing issue before the commencement of voting on the company's amended plan of reorganization. At today's hearing, the Court also provisionally scheduled a hearing to consider confirmation of the amended plan for October 7. These hearing dates are subject to change. The company would expect to exit from chapter 11 shortly after obtaining the necessary approvals from the Bankruptcy Court. Earlier this month, following the filing of the independent examiner's report, the U.S. trustee disbanded the official creditors committee. FiberMark, headquartered in Brattleboro, Vermont, is a leading producer of specialty fiber-based materials meeting industrial and consumer needs worldwide, operating 11 facilities in the eastern United States and Europe. Products include filter media for transportation and vacuum cleaner bags; base materials for specialty tapes, electrical and graphic arts applications; wallpaper, building materials and sandpaper; and cover/decorative materials for office and school supplies, publishing, printing and premium packaging.