FiberMark files revised plan of reorganization
Aug 29, 2005. FiberMark, Inc. announced that it has filed a revised plan of reorganization and related disclosure statement.
Aug 29, 2005. /Lesprom Network/. These documents, the previous versions of which were filed in June 2005, were revised to reflect the findings of the recently unsealed independent examiner’s report, including a mechanism for litigating the causes of action identified in the report and distributing to unsecured creditors any net recoveries received as a result of the litigation. Pending bankruptcy court approval of the company's disclosure statement at the hearing now scheduled for September 9, 2005, the company’s plan of reorganization will be submitted to creditors for voting shortly thereafter, with a confirmation hearing to follow as scheduled by the court.
In addition, the company announced that it has received exit financing commitments for approximately $155 million that will be effective upon the company’s emergence from chapter 11. The financing package includes a $75 million five-year non-amortizing term facility, underwritten by Silver Point Finance LLC, which will be used to fund the cash distribution of the recovery for the unsecured creditors. It also includes two revolving credit facilities for working capital and general corporate purposes, underwritten by GE commercial finance, including Euro 40 million (approximately $50 million) for the company's German operations and $30 million for its North American operations. The size of the revolver for the German operations is larger than the company’s current facility to reflect potential capital investment for additional German production capacity.
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.