Orchids Paper Reaches Agreement with Creditors
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Orchids Paper Products (Oak., USA) announced this week that it has reached an agreement with its creditors, amending its credit agreement. The company also announced that it has won a significant bid with a new customer, to supply 100% recycled tissue.
Jeff Schoen, president and CEO, stated, "Our lenders continue to support and maintain access to the liquidity needed to operate our business. On November 20, we executed modifications to our credit facilities to increase the amount available under our revolving line of credit by $5.9 million and to defer future principal and interest payments to Dec. 31, 2018. In addition, the amended agreement extends the milestone dates to execute a transaction to Dec. 31, 2018. At the end of the third quarter, the Company had $5.1 million of cash on hand.
"Additionally, we recently won a significant bid from a national supercenter retailer as the sole supplier of 100% recycled ultra-premium kitchen towel and bath tissue supporting the sustainable product channel, which will be serviced out of our Barnwell facility using QRT paper. We expect this business to begin shipping in March 2019 and to make a significant contribution to the overall profitability of the company."
