Recap: Badger Paper Mills shutdown of Peshtigo, Wis., paper mill follows failure of acquisition deal

SAN FRANCISCO , October 25, 2005 () – After announcing the termination of an acquisition deal, Badger Paper Mills Inc. said it has permanently shut down its flexible packaging and specialty paper mill in Peshtigo, Wis.

According to local news reports, Badger confirmed the shut, and 99 employees received layoff notices on Oct. 17.

The company has downsized in recent years, and workers said the layoff is not a shock following a decade of struggles, WBAY-TV reported.

In a company statement, Badger on Oct. 17 announced that it had terminated merger negotiations with James D. Assar that would have provided for the acquisition of Badger. The plan with Azzar had been announced on Sept. 22.

In the same statement, Badger also said it had terminated its registration under the Securities Exchange Act and that it had taken action to delist its common stock from The Nasdaq Small Cap Market.

Under the terms of the Azzar letter of intent, Badger Paper Mills' shareholders would have received $1.25 in cash per share of Badger Paper Mills common stock, but following protracted negotiations with Mr. Azzar, the parties were unable to finalize a definitive agreement, Badger said in its statement.

On June 3, Badger announced that it would indefinitely shut down its uncoated free-sheet Fourdrinier paper machine and associated equipment at the Peshtigo mill, costing approximately 100 jobs.

There was no immediate word as to Badger's plans for its remaining facility, a flexible packaging operation located in Oconto Falls, Wis.

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