Dec 05, 2005. /Lesprom Network/. FiberMark, Inc. announced on Friday that the U.S. Bankruptcy Court for the district of Vermont has confirmed its plan of reorganization, setting the stage for the company's emergence from chapter 11 as a private company in early January 2006. The plan of reorganization dated November 1, 2005, received strong support among its creditors in voting that concluded in November. Under the plan, general unsecured creditors, including most bondholders and trade creditors, will recover approximately 70% of their claims, and the company expects to emerge with funded debt of up to approximately $88 million, representing one- fourth of the company's pre-chapter 11 debt level. Some creditors elected to receive a combination of stock and cash, with an approximate total recovery value of 62%. Under the plan, the company's existing common stock will be cancelled, and public trading of that stock is expected to cease prior to or no later than the date of chapter 11 emergence. As earlier reported, FiberMark has received exit financing commitments that include funding for the cash distribution called for in the Plan, funded by Silver Point Finance LLC, and revolving credit facilities for the company's North American and German operations, provided by GE Commercial Finance. GE also extended the debtor-in-possession ("DIP") credit facility through January 31, 2006, to ensure financing coverage until emergence. According to Alex Kwader, chief executive officer, confirmation represents the final step in the company's chapter 11 financial reorganization process. "When the Plan becomes effective next month, we will have achieved our objectives to emerge as a stronger company strategically, operationally and financially, with a debt load appropriate for our business," Mr. Kwader said. "We deeply appreciate the support of our customers, vendors and employees throughout this process, and look forward to continuing to meet their needs and expectations as a streamlined and strengthened FiberMark in the years ahead." 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, wallpaper, building materials, sandpaper and graphic arts applications; and cover/decorative materials for office and school supplies, publishing, printing and premium packaging.