Appvion, Inc. announced that it and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware to facilitate a balance sheet restructuring and better position the business for long-term growth and success. The Company expects to continue operations as usual and has obtained a commitment for $85 million in new debtor-in-possession ("DIP") financing from a group of its first lien lenders. Subject to Bankruptcy Court approval, this DIP financing, combined with cash generated by the Company, is expected to provide more than adequate liquidity to support ongoing operations during the process. "We thoroughly explored various alternatives to address our debt and have been engaged in constructive discussions with our lenders regarding sponsorship of a plan to delever the Company and enhance our liquidity," said Kevin Gilligan, Chief Executive Officer of Appvion. "While those discussions are active and continuing, we determined that pursuing a restructuring through Chapter 11 is the best path forward for Appvion and our stakeholders. We believe this process will result in a sustainable capital structure for our business." Click Read More below for additional detail.
WestRock Company (NYSE: WRK) today announced the filing of the initial Form 10 registration statement for Ingevity Corporation with the U.S. Securities and Exchange Commission (“SEC”). Ingevity, the specialty chemicals business of WestRock, will become a new independent public company following the successful completion of its separation from WestRock. Ingevity is expected to trade on the New York Stock Exchange under the symbol of “NGVT.” Upon completion of the spinoff of Ingevity, which is expected to occur in the first calendar quarter of 2016, WestRock shareholders as of the record date for the separation will own 100 percent of the new company.
“Today’s filing continues the progress we are making to separate the specialty chemicals business from WestRock,” said Steve Voorhees, chief executive officer, WestRock Company. “The separation of Ingevity from WestRock will better position both businesses to pursue their respective operating priorities and strategies, and to focus on their unique opportunities for long-term growth and profitability.”
“I am extremely proud of the tremendous effort the Ingevity team has made to prepare for the separation, while also remaining focused on operating safely, meeting customers’ expectations and delivering on our financial commitments,” said Michael Wilson, the chief executive officer of Ingevity. “As a result, we believe we are well positioned to become a successful independent public company.”
Ingevity is a leading global manufacturer of specialty chemicals and high performance carbon materials. The company’s specialty chemicals products serve as critical inputs used in a variety of demanding applications, including asphalt paving, oil exploration and production, agrochemicals, adhesives, lubricants and publication inks. The company is also the leading global manufacturer of activated carbon used in gasoline vapor emission control systems in cars, trucks, motorcycles and boats, with over 750 million units installed globally.