(Reuters) - U.S. paper maker Appvion Inc [APPAP.UL] and some of its subsidiaries filed for Chapter 11 bankruptcy protection on Sunday, the company said.
Appvion listed assets in the range of $100 million-$500 million and liabilities in the range of $500 million-$1 billion, the Delaware bankruptcy court filing showed.
The company said it has obtained a commitment for $85 million in new debtor-in-possession financing froma group of its first lien lenders.
Appvion, headquartered in Appleton, Wisconsin and owned by its employees, said in June it had hired investment bank Guggenheim Partners LLC to address its $440 million debt load amid declining sales due to consumers’ switch to electronic communications.
The company has a revolving credit line due in 2018 with its term loan due in the following year which could put Appvion under further financial strain, according to an assessment from credit rating agency Moody’s Investors Service.
The company’s net sales fell to $164 million in the quarter ended July 2, from $173.6 million a year earlier.
DLA Piper is acting as the company’s legal counsel with Alan Holtz of AlixPartners serving as its chief restructuring officer, Appvion said.
Reporting by Kanishka Singh; Editing by Gopakumar Warrier