Connecticut Investment Firm to Buy Smart Papers
August 21, 2006 - A Connecticut-based investment firm has agreed to purchase Smart Papers LLC after the Hamilton, Ohio-based papermaker was put up for auction last Tuesday (Aug. 15).
Plainfield Asset Management, based in Greenwich, Conn., agreed to assume control over Smart Papers and its debt, and pursue its Chapter 11 reorganization, according to a Hamilton Journal-News story.
Plainfiled will also enter into a one-year labor contract with Smart Papers workers under the same terms as an agreement that expired in June, the Journal story said.
The U.S. Bankruptcy Court in Delaware, which ordered the auction, must approve the sale.
Smart Papers filed for bankruptcy on March 22, 2006 after the company was hampered by increasing costs for energy, wood fiber, transportation and logistics.
Smart Papers LLC was created in 2001 when investment group Sun Capital Partners bought the Hamilton paper mill from International Paper.
SOURCE: Industry News Reports