FiberMark, Inc. Receives Court Approval of First-Day Motions
April 02 2004 - 3:56PM
PR Newswire (US)
FiberMark, Inc. Receives Court Approval of First-Day Motions
Receives Interim Approval of Debtor-in-Possession Credit Facility;
Hearing on Final Approval Scheduled for April 27, 2004 BRATTLEBORO,
Vt., April 2 /PRNewswire-FirstCall/ -- FiberMark, Inc. today
announced that Judge Colleen A. Brown of the U.S. Bankruptcy Court
for the District of Vermont has given interim approval for all of
FiberMark's first-day motions in connection with its previously
announced chapter 11 filing on March 30, 2004. The first-day orders
issued by Judge Brown yesterday will enable FiberMark to continue
normal operations during the reorganization process. (Logo:
http://www.newscom.com/cgi-bin/prnh/20030929/FIBERLOGO ) Judge
Brown's orders included interim approval, as requested, of the
debtor-in-possession (DIP) credit facility being provided to the
company by GE Commercial Finance. A hearing on final approval of
the DIP facility and of FiberMark's other first-day motions has
been scheduled for April 27, 2004. Alex Kwader, chairman and chief
executive officer of FiberMark, said: "The granting of interim
approval of our first-day motions by Judge Brown is an important
early step toward the completion of our financial reorganization.
The ability to continue providing our employees with pay and
benefits, and to meet our post-petition vendor obligations-with
cash on hand, cash flow from operations and, as necessary, by means
of the DIP facility-will enable us to continue normal operations at
all of our facilities. That, in turn, will allow us to continue to
meet our customer commitments in a business-as-usual manner." The
company also announced today that it has signed an amended and
restated $40 million revolving credit facility for its German
subsidiaries. Both credit facilities are supplied by GE Commercial
Finance, which was FiberMark's financial partner on the credit
facility that closed in November 2003. Reflecting its recent
voluntary filing for chapter 11 protection in order to pursue a
financial reorganization and debt restructuring, the company has
decided to voluntarily delist the company's common stock from the
American Stock Exchange ("Amex"). FiberMark said it will seek
listing on the OTC Bulletin Board and, to that end, is currently
evaluating potential market makers for its stock. Since the filing,
Amex has suspended trading. Trading is expected to resume once the
company transitions to the OTC Bulletin Board, a process that is
expected to take another week or so. FiberMark, headquartered in
Brattleboro, Vt., is a leading producer of specialty fiber-based
materials meeting industrial and consumer needs worldwide,
operating 11 facilities in the eastern United States and Europe.
Products include filter media for transportation and vacuum cleaner
bags; base materials for specialty tapes, electrical and graphic
arts applications; wallpaper, building materials and sandpaper; and
cover/decorative materials for office and school supplies,
publishing, printing andpremium packaging. This press release
contains forward-looking statements. Actual results may differ
depending on the economy and other risk factors discussed in the
company's Forms 10K as filed with the SEC on March 30, 2004, which
is accessible on the company's Web site: http://www.fibermark.com/.
Contact: Janice C. Warren Director of Investor Relations and
Corporate Communications 802 257 5981 Roy Winnick or Mark Semer
Kekst and Company 212-521-4842 or 4802 Logo:
http://www.newscom.com/cgi-bin/prnh/20030929/FIBERLOGO AP Archive:
http://photoarchive.ap.org PRN Photo Desk, 888-776-6555 or
212-782-2840 DATASOURCE: FiberMark, Inc. CONTACT: Janice C. Warren,
Director of Investor Relations and Corporate Communications of
FiberMark, Inc., +1-802-257-5981; or Roy Winnick, +1-212- 521-4842
or Mark Semer, 1-212-521-4802 both of Kekst and Company Web site:
http://www.fibermark.com/
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