Blue Heron Paper Company Files Chapter 11
Jan. 7, 2010 - Blue Heron Paper on Dec. 31 filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The company is an employee-owned firm with 216 workers.
The Oregon City, Oregon-based papermaker, which produces newsprint and specialty uncoated papers, said weak demand for newsprint over the past year and unfavorable pricing, coupled with rising input costs, left the company with no choice but to file for bankruptcy.
"This was a very difficult decision for us to have to make," company president and CEO Mike Siebers said in a press release."It comes at a particularly bad time with the holidays upon us. I am sorry for the disruption this will cause our creditors, suppliers and particularly our employees, but there appears to be no other choice for the company.
"Even though the company should have positive net income in 2009, we have an ongoing liquidity crisis due to the loss of newsprint orders and a steep decline in newsprint and specialty paper pricing across this year," Siebers said.
"Our goal is to emerge from this with a much healthier financial structure that will help make the company stronger and more competitive going forward," he added.
According to an article on the Oregon City News website, Blue Heronís revenue in 2008 was about $150 million but dropped to around $107 million in 2009.
SOURCE: Online news articles.
To read a more comprehensive story on Blue Heron's bankruptcy filing, see:
» Blue Heron Paper Company files for bankruptcy (Oregon City News)