Marcal Paper Mills Plans to Sell Company by Year-End
Oct. 3, 2007 - Marcal Paper Mills said that it has filed its intent to proceed with an amended plan of reorganization and sale process with the United States Bankruptcy Court for the District of New Jersey.
"After expending a considerable amount of time and effort exploring various restructuring alternatives, we have concluded that a sale of the company as part of a plan of reorganization—while we continue to operate in the ordinary course of business—is the best way for us to provide continuing employment to our loyal people, ensure our ongoing relationships with our many valued customers and vendors, and maximize value for the benefit of our creditors," said Marcal's chairman and CEO, Nicholas Marcalus.
Pending the submission of the anticipated amended plan, the Company and its investment banker, NatCity Investments, Inc., will proceed with an orderly and efficient sale process with the object to close a transaction by year end.
"Importantly, our company's operations will continue in the ordinary course of business with funding from our DIP lenders. This will ensure the continued employment of our dedicated employees, payment of all of our post-petition obligations and high-quality service to our customers. Unfortunately, the tightening of the credit markets and inability to meet certain closing conditions under the existing plan of reorganization requires the company to pursue an alternative strategy for the best interests of all stakeholders," added Marcalus.
Marcal, founded in 1932, is a privately-held, fourth generation family business. It employs over 900 people in its Elmwood Park, New Jersey and Chicago, Illinois manufacturing operations. The company produces over 160,000 tons of finished paper products, including bath tissue, kitchen towels, napkins and facial tissue, distributed to retail outlets for home consumption and to distributors for away-from-home use in hotels, restaurants, hospitals, offices and factories.
SOURCE: Marcal Paper Mills, Inc.
See related stories:
Marcal Paper Mills Files Voluntary Chapter 11 (12/1/06)
Marcal Secures Finance Package During Restructuring (12/19/07)
Marcal Files Plan of Reorganization in NJ Court (6/25/07)