Court OKs sale of bankrupt Marcal Paper for $160M

Marcal Paper Mills, Inc., one of the nation's best known manufacturers and distributors of bath tissue, kitchen towels, napkins and facial tissue, announced on January 18 that the United States Bankruptcy Court for the District of New Jersey has approved the sale of substantially all of the Company's assets to an affiliate of NexBank, SSB, as agent under the second lien loan agreement, for the aggregate total consideration of approximately $160 million.

Under the terms of the parties' asset purchase agreement, NexBank will form Marcal Paper Mills Inc., LLC, as the purchaser and holder of substantially all of the Company's assets free and clear of any interests, claims, encumbrances and liens. The purchaser has reached agreement with the United Steel Workers on a new collective bargaining agreement and has agreed to pay all of the vendor's claims incurred during the bankruptcy proceeding and honor all customer obligations. The Court-approved sale enables Marcal to emerge from bankruptcy as a new, vibrant, ongoing concern.

About Marcal Paper Mills
Marcal, founded in 1932, is a privately-held business. It employs over 900 people in its Elmwood Park, New Jersey and Chicago, Illinois manufacturing operations. The company produces over 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 over fifty 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 over 200,000 tons of recovered paper. Marcal's slogan, "Paper from Paper, Not from Trees," symbolizes the commitment of the company to sustainable manufacturing.