Elmwood Park, New Jersey, USA, 05 January 2007 -- /PRNewswire/ -- Marcal Paper Mills, Inc., one of the nation's best known manufacturers and distributors of bath tissue, kitchen towels, napkins, and facial tissue, announced today that it has received court approval of a loan commitment to the company for up to USD 84.5 million Debtor-in-Possession (DIP) financing from Highland Financial Corporation, including the immediate availability of a USD 20 million revolving credit facility.

As previously announced, this financing package will allow the company to use all of its cash balances and provide it with greater liquidity to fund normal business operations during the restructuring process.

Nicholas Marcalus, company chairman and CEO said, "This is another important step in the restructuring process. Our core business is strong, and with this approved financing in place, we expect to emerge from this process as a stronger and healthier company and to forge even better business relationships with our customers, vendors, and employees."

About Marcal Paper Mills

Marcal, founded in 1932, is a privately-held, fourth generation family business. It employs more than 900 people in its Elmwood Park, New Jersey, and Chicago, Illinois, manufacturing operations. The company produces more than 160,000 tons of finished paper products, including bath tissue, kitchen towels, napkins, and facial tissue, distributed to retail outlets for home consumption and to distributors for away-from-home use in hotels, restaurants, hospitals, offices, and factories. For more than 50 years, Marcal has been a leader in recycling recovered paper as a source of high-grade cellulose fiber for manufacturing tissue products. Each year, Marcal recycles more than 200,000 tons of recovered paper. Marcal's slogan, "Paper from Paper, Not from Trees," (R) symbolizes the commitment of the company to sustainable manufacturing.

Source: Marcal Paper Mills, Inc.