Court approves DIP financing for Port Townsend Paper
March 2, 2007 (Press Release) - Port Townsend Paper Corporation yesterday said that it has received final approval on its debtor-in-possession ("DIP") financing from the U.S. Bankruptcy Court for the Western District of Washington (the "Court"). The Company also announced that yesterday it filed its Plan of Reorganization (the "Plan") and Disclosure Statement with the Court. The Plan provides for the Company's reorganization and continuation of its business operations.
"Our organization is focused on completing this reorganization as expediently as possible," said Timothy P. Leybold, Chief Financial Officer. "The filing of our Plan and Disclosure Statement within 30 days from entering Chapter 11 is evidence of our commitment to a 'fast track' emergence from bankruptcy with a revitalized balance sheet."
The Company's Plan calls for, among other things, the repayment in full of logger's liens and numerous other priority claims from suppliers promptly when the Plan is effectuated. The Company will continue to negotiate with various creditor constituencies in an effort to achieve a consensual restructuring.
The DIP financing, initially approved by the Court on an interim basis during motions held January 31st, provides the Company with a $13 million revolving line of credit to finance the Company's expected liquidity needs through the resolution of its Chapter 11 case.
Since filing for reorganization under Chapter 11 on January 29th, the Company has received support from numerous vendors and customers alike.
As previously disclosed, the Company's Canadian subsidiaries are not part of the Company's Chapter 11 filing.
Copies of court documents filed in connection with the Chapter 11 cases are available via the Court's website at www.wawb.uscourts.gov www.wawb.uscourts.gov. Please note that a PACER password is required to access the documents via the Court's website.
SOURCE: Port Townsend Paper Corp