Appvion (the “Company”) today announced completion of the sale of substantially all of the Company’s assets to a group of its lenders led by Franklin Advisers, Inc. (the “Purchaser”). The transaction will significantly reduce Appvion’s debt, provide additional liquidity, and better position the Company to compete long-term in the evolving specialty paper market and further invest in the innovation that has made it a market leader.
As previously announced, the sale was approved by the U.S. Bankruptcy Court for the District of Delaware on May 14, 2018. The total consideration was approximately $365 million, plus the assumption of substantial liabilities, including many of the Company’s contractual obligations.
Ratification of New Collective Bargaining Agreements
Prior to the closing of the transaction, the Company reached agreement with the United Steelworkers Union on new collective bargaining agreements for Appvion’s manufacturing facilities in Appleton, Wisconsin, West Carrollton, Ohio, and Roaring Spring, Pennsylvania. The new three-year agreements, which were ratified at the end of May, cover approximately 830 Appvion employees.
Paper Industry Veterans Join Management Team
George W. Wurtz III, who has served as a member of Appvion’s board of directors for nearly seven years, has been named president, chief executive officer, and chairman of the Company’s newly-formed board. Jim Tyrone, who served as a senior vice president at Appvion from 2010 to 2012, has been named senior vice president of sales and marketing. These appointments are effective immediately.
“I would like to thank Kevin Gilligan for his leadership and many contributions during his tenure as CEO, helping Appvion navigate opportunities and challenges as well as its successful restructuring and sale process, and recognize Justin Merritt for his commitment to serving our customers as our sales and marketing lead through sale completion,” said George Wurtz.
more at: http://appvion.com/en-us/Documents/Historical%20News/AppvionCompletesSaleLenderGroupLedFranklinAdvisers.pdf