Marcal Secures Finance Package During Restructuring
Dec. 19, 2006 - Marcal Paper Mills, Inc. today said that, subject to court approval, the company has secured a loan commitment for up to $84.5 million Debtor-in-Possession (DIP) financing from HFC with immediate availability of up to $20 million.
The company said the financing package will allow it to use all of its cash balances and provide it with greater liquidity to fund normal business operations during its restructuring process.
The New Jersey-based maker of toilet paper, kitchen towels, napkins and facial tissue, on Nov. 30, filed a voluntary Chapter 11 reorganization bankruptcy petition.
Marcal's chairman and CEO, Nicholas Marcalus, said, "This is an important step in the restructuring process. Our core business is strong, and with this financing in place, we expect to emerge from the reorganization as a stronger and healthier company and to forge even better business relationships with our customers, vendors and employees."
SOURCE: Marcal Paper Mills, Inc.