Appvion filing for bankruptcy


The American paper manufacturer Appvion has filed a petition, together with some of its subsidiaries, to access the bankruptcy procedure under Chapter 11 of the US banking code. The objective is to facilitate budget restructuring and promote a better positioning of the company’s activities in the long run. The company intends to carry on its normal activities and a group of its first investors has committed to invest new funds worth 85 million dollars. Without prejudice to the Bankruptcy Court approval, this financing, together with the money generated by the company activities, is expected to provide adequate cash to support ongoing transactions during the winding-up procedure. «We have analysed several alternatives to cope with our debt and have carried out fruitful discussions with our investors on the sponsorship of a plan aimed at improving our liquidity situation», says Appvion CEP Kevin Gilligan. «We decided that opting for a thorough restructuring as foreseen by Chapter 11 is the best solution. We believe that this process will end up with a company having a capital structure that is sustainable for our business».