Marcal Paper Mills Inc., a manufacturer and distributor of bath tissue, kitchen towels, napkins and facial tissue, announced July 27 that the company has filed a motion to approve the settlement – without admitting any wrongdoing – reached with the United States on behalf of the Environmental Protection Agency (EPA), the Department of the Interior (DOI) and the Department of Commerce (DOC) on all of the elements of its claim.
"We are pleased that we could work together to quickly settle this claim for the benefit of all parties and cut short an otherwise protracted and costly legal battle with the EPA to prove the company's innocence. This settlement not only is a very positive development in Marcal Paper's emergence from Chapter 11, but also confirms Marcal Paper's outstanding reputation as an environmentally responsible company," said company chairman and CEO Nicholas Marcalus.
"This settlement recognizes that Marcal Paper, the largest recycler of paper in
Under the terms of the agreement, Marcal Paper has agreed to a settlement of the claim at $3 million. This settlement will be classified as an unsecured pre-petition claim, subject to the terms of the Plan of Reorganization already developed by the company with the support of its major creditors.
Marcal, founded in 1932, is a privately held, fourth-generation family business. It employs more than 900 people in its