The Newark Group, Cranford, N.J., USA, this past week reported that it has obtained court approval of its prepackaged plan of reorganization. The plan was approved by the U.S. Bankruptcy court in Newark, New Jersey just 51 days after commencement of the case. The company expects to exit Chapter 11 around the middle of this month.
The Newark Group’s two impaired creditor classes voted in favor of the plan by greater than 90%, and its two impaired classes of equity interests also voted in favor of the plan by greater than 90%, allowing the company to enter Chapter 11 with a fully supported prepackaged plan. Shortly thereafter, the company closed on its two DIP loans, a $50 million revolver and a $110 million term loan led by ORIX Finance.
"We are pleased to have the continued support of our note holders and lenders as we move forward to strengthen our balance sheet for sustainable growth," said Robert Mullen, president and CEO. "Throughout this process, we have maintained our focus on customers and we remain the same company with no change in facilities or capacities. We appreciate the support and commitment we have received from our stakeholders, and are excited about our future."
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