Cranford, New Jersey, USA, 30 July 2010 -- /PRNewswire/ -- The Newark Group, Inc., an integrated global producer of 100% recycled paperboard and paperboard products, today announced that it has obtained court approval of its prepackaged plan of reorganization. The plan was approved by the U.S. Bankruptcy Court in Newark, New Jersey, just 51 days after commencement of the case. The company expects to exit Chapter 11 in mid-August.
The company's two impaired classes of equity interests also voted in favor of the plan by greater than 90%. Thus, the company entered Chapter 11 with a fully supported prepackaged plan. Shortly thereafter, the company closed on its two debtor-in-possession loans, a USD 50 million revolving loan, and a USD 110 million term loan led by ORIX Finance.
"We are pleased to have the continued support of our note holders and lenders as we move forward to strengthen our balance sheet for sustainable growth," said Robert Mullen, president and chief executive officer of The Newark Group, Inc. "Throughout this process, we have maintained our focus on customers and we remain the same company with no change in facilities or capacities. We appreciate the support and commitment we have received from our stakeholders, and are excited about our future."
With headquarters in Cranford, New Jersey, The Newark Group, Inc. manufactures and sells recycled paperboard and paperboard products. The company operates in three segments: Paperboard, Converted Products, and International. For more information, visit www.NewarkGroup.com.