The suspense is not completely over for Appleton Coated and its 620 employees. The struggling paper mill's sale to Industrial Assets Corp., a used machinery dealer based in Los Angeles, progressed in a six-hour marathon hearing Monday before Outagamie County Circuit Court Judge Gregory Gill. "I'm not going to take any action," Gill said late Monday. "We have definitive things in place but we're not at the finish line." Lawyers have a maximum of five days to hash out the details of a hybrid agreement that states Industrial Assets will pay $20 million for Appleton Coated and at the same time market the mill as an ongoing operation for 45 days. Mark Freedlander, an attorney for Industrial Assets, said "we have reached an agreement and we are responsible for marketing the entity as a going concern." Click Read More below for additional detail.
Fortress Paper Ltd. (“Fortress Paper” or the “Company”) reported 2017 second quarter operating EBITDA of $4.3 million, a decrease of $2.0 million relative to the comparative prior year period and a decrease of $3.2 million over the previous quarter. The Dissolving Pulp Segment generated operating EBITDA of $3.5 million and the Security Paper Products Segment generated operating EBITDA of $2.8 million. Corporate costs included in operating EBITDA were $2.0 million.
Pursuant to the Company’s normal course issuer bid (the “NCIB”), the Company repurchased 54,688 common shares for a total cost of $360,000 at an average price of $6.58 per share during the second quarter. The Company has the ability to purchase an additional 355,321 common shares under the NCIB.
After 36 years in the forestry industry, including nearly five years at Fortress Paper, Yvon Pelletier will be retiring from the Company effective October 1, 2017. Chadwick Wasilenkoff will re-assume the role of Chief Executive Officer and President and continue to serve as Chairman of the board. In order to facilitate a smooth transition of Mr. Pelletier’s duties and strong customer and government relationships, he has agreed to a two year consulting agreement.
Yvon Pelletier, Chief Executive Officer of Fortress Paper, commented: “I would like to thank the whole team at Fortress for sharing these past five years of my career with me. With the addition of Giovanni Iadeluca to Thurso’s operations and Mr. Wasilenkoff’s full-time involvement, I am confident that I am leaving the Company in good hands for the next stage of improvement and growth.”
more detail at: http://fortresspaper.com/wp-content/uploads/2017/08/FORTRESS-PAPER-REPORTS-SECOND-QUARTER-2017-RESULTS.pdf