Smart Papers Files Plan to Emerge From Chapter 11
Nov. 3, 2006 - Smart Papers said it plans to emerge from Chapter 11 bankruptcy by the end of 2006, according to a plan filed Wednesday with the U.S. Bankruptcy Court.
The Hamilton-based paper manufacturer filed for bankruptcy in March. Plainfield Asset Management , a hedge fund based in Greenwich, Conn., assumed control over the company and much of its debt in August.
According to a Hamilton Journal-News story, Smart Papers will issue 92.5 percent of its shares to Plainfield to satisfy a $5 million secured claim. It will pay off the remainder of its debt to Plainfield with investment funds after emerging from Chapter 11.
The remaining shares will be used to pay unsecured creditors, and another $1.6 million will be paid to former owner International Paper, according to the story.
The company sold its Wisconsin paper mill in July, and auctioned off its Illinois distribution and warehouse facilities in late October.
Smart Papers was created in 2001 when investment group Sun Capital Partners bought the Hamilton paper mill from International Paper.
The Hamilton mill operates four paper machines and has an annual capacity of 93,000 tons of premium coated and uncoated printing papers.
SOURCE: Cincinnati Business Courier