The Newark Group Emerges from Chapter 11
Aug. 17, 2010 (Press Release) - The Newark Group [yesterday] announced that it has emerged from chapter 11 bankruptcy and completed a successful reorganization. The plan of reorganization was approved by the U.S. Bankruptcy court in Newark, New Jersey just 51 days after commencement of the case.
As the final step in its reorganization, the Company [Aug. 16] closed on its two exit loans. The first exit loan is a $70 million revolver arranged by Wells Fargo Capital Finance; the second is a $110 million term loan led by ORIX Finance. Together these facilities provide the Company with approximately $25 million of undrawn liquidity.
"We are pleased to have the continued support of our lenders and stakeholders as we have completed the steps necessary to strengthen our balance sheet so we are poised for sustainable growth," said Robert Mullen, President and Chief Executive Officer of The Newark Group, Inc. "Throughout this process, we have maintained our focus on our customers and we remain the same company with no change in facilities or capacities. We emerge from chapter 11 a well capitalized private company with a much improved operating profile."
About The Newark Group
With headquarters in Cranford, New Jersey, The Newark Group, Inc. manufactures and sells recycled paperboard and paperboard products. The Company operates in three segments: Paperboard, Converted Products and International.
SOURCE: The Newark Group, Inc.