Court ok's DIP financing for Port Townsend Paper
Apr 19, 2007 (Press Release) - Port Townsend Paper Corp. and its affiliates (the "Company") yesterday announced that it has received final approval from the U.S. Bankruptcy Court for the Western District of Washington (the "Court") for DIP financing up to an aggregate amount of $50 million.
As previously announced on March 30, 2007, pursuant to an Interim Order, the Court had previously approved the DIP financing consisting of an aggregate amount of $38 million in notes issued to certain holders of the Company's existing senior secured notes. The proceeds from the $38 million in DIP financing were used on March 30, 2007 to repay the Company's prior DIP facility with CIT Corporation and provide additional working capital. The final approval permits up to an additional $12 million in notes to be issued to certain of the Company's existing senior secured notes holders who had previously committed to provide such financing subject to final court approval. These additional proceeds will provide the Company with increased working capital to meet its liquidity needs in Chapter 11.
The Company also announced that the hearing date for the Company's Disclosure Statement has been rescheduled with the Court for 9:30 a.m. on May 15, 2007. Additional information and schedules relating to the Company's Disclosure Statement, which was originally filed on February 28, will be filed with the court on or about May 9, 2007.
"Substantial reporting requirements associated with bankruptcy and our DIP loan have delayed completion of the schedules necessary for the Disclosure Statement," said John Begley, the Company's Chief Executive Officer.
"However, the significant liquidity provided by the new DIP facility is good news for our vendors and suppliers, and we remain committed to moving through the bankruptcy process as quickly as possible," continued Begley.
The Company also said it received final court approval of the appointment of the firm Alvarez and Marsal as its Chief Restructuring Officer.
SOURCE: Port Townsend Paper Corporation