ROARING SRPING, Pa. - Appvion Inc., which operates a paper and pulp mill in Blair County, has been approved by a U.S. bankruptcy court to sell all its assets by the end of May.
In a news release, the company said the group buying the assets, Franklin Advisers Inc, submitted a "stalking horse bid" in February for $340 million plus the assumption of substantial liabilities, including Appvion's contractual obligations.
“We are pleased to receive the Court’s approval of the sale of our company to a group of our lenders who have been long-term supporters of Appvion. Their continued investment is a vote of confidence in the future of our business," said Kevin Gilligan, Appvion CEO.
The transaction will reduce Appvion's debt to from $585 million to less than $175 million.
Appvion filed for Chapter 11 bankruptcy in October and said it would be cutting 200 jobs at its Appleton, Wisconsin location and bring some of the work to Roaring Spring.
The sale does not include the assumption of the employee stock ownership plan or its pension plan, and the ESOP will be terminated following the completion of the sale.
“Our goal when we began the Chapter 11 process was to better position Appvion to compete long-term in the evolving specialty paper market and further invest in the innovation that has always made us a market leader," said Gilligan.
"We expect to complete the sale expeditiously and emerge as a healthier, financially-stable business that will be an even stronger partner to all of our stakeholders in the years
to come.” A spokesman for Appvion said the sale will not impact employment or operations at the Roaring Spring location.
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