Virginia-based newsprint maker Bear Island Paper can put amended plan for liquidation to creditor vote, rules bankruptcy court judge
October 7, 2011
– Virginia newsprint manufacturer Bear Island Paper Co. LLC can put its amended plan for liquidation to creditors for a vote, a U.S. Bankruptcy Court judge ruled Oct. 5, Bloomberg reported on the same day.
A Nov. 22 hearing is scheduled to confirm the plan, which would result in shareholders in the Ashland, Virginia-based company receiving nothing.
Creditors holding about US$531.4 million in particular secured and unsecured claims would be paid between 0.5% and 4% on the debt. Those holding intercompany claims totaling $135.9 million would recover the same, reported Bloomberg.
Bear Island's disclosure plan contains enough information for creditors to make an informed decision, ruled U.S. Bankruptcy Court Judge Douglas O. Tice Jr., in Richmond, Virginia, Bloomberg reported.
Bear Island blamed the slowing demand for newsprint when it sought bankruptcy court protection in February 2010. It is a subsidiary of White Birch Paper Co.
The primary source of this article is Bloomberg, New York, New York, on Oct. 5, 2011.