Appleton Coated is looking for a buyer interested in contuining the operations and directing the company towards more profitable market segments, such as high-value graphics market and containerboard.
Last week, US fine and specialty paper manufacturer Appleton Coated has filed a voluntary state petition for receivership under Chapter 128 of Wisconsin legislation. The company said that the petition for receivership, an alternative to bankruptcy, allowed to continue operations under the supervision of a court-appointed receiver, who would lead a process aimed at selling the company's assets to a buyer interested in contuining operations at the site.
Appleton Coated blames its decision on the challenging conditions on the graphic paper market in North America combined with recent increases in raw material costs, especially market pulp.
Appleton Coated, a former Sequana Capital subsidiary, runs three paper machines with a combined capacity of 400,000 sh.t and has another 280,000 sh.t in converting and finishing capacity, producing coated and uncoated fine papers for printing and publishing, label papers and technical and specialty papers.
According to the company's CEO and President, Doug Osterberg, the filing will relieve the company's burdensome debt and help attract an appropriate buyer. Operating results were expected to improve in the near term as the company "fills unused capacity by moving into both the high-value graphics and commodity segments of containerboard packaging," he said.
Find the entire article and any associated background information in EUWID Pulp and Paper issue 34/2017.
Our weekly newsletter's print and e-paper versions keep busy professionals up-to-date on the latest news from European pulp and paper markets.
Test EUWID Pulp and Paper free of charge and without any obligation by clicking here.
