FiberMark, Inc. announced that it completed its financial reorganization and emerged from chapter 11 as a private company. The company implemented its Plan of Reorganization, which had been approved by the U.S. Bankruptcy Court, District of Vermont, by order entered on December 5, 2005.
In conjunction with its emergence from chapter 11, the company also closed on its exit financing facilities. The package includes $80 million in revolving credit facilities for working capital and general corporate purposes underwritten by GE Commercial Finance for its German and North American operations, none of which was drawn at closing. The company also has approximately $18 million in cash.
“This is a long-awaited and welcome day for the company, marking completion of our financial restructuring and our emergence from chapter 11,” said John Hanley, chief financial officer, FiberMark. “We have met our objective of emerging as a stronger company strategically, operationally and financially, with a debt load appropriate for our business.”
Consistent with the Court-approved Plan, FiberMark's previously outstanding common stock will cease trading and has been cancelled. New common stock has been created under the plan for issuance to certain unsecured creditors.
FiberMark installed its new Board of Directors, as detailed in its plan, and the Board of Directors announced that Alex Kwader has retired from his positions as the company's Chairman of the Board of Directors and Chief Executive Officer.