The Newark Group, Cranford, N.J., USA, this week emerged from chapter 11 bankruptcy and reports that it has completed a successful reorganization. The plan of reorganization was approved by the U.S. Bankruptcy court in Newark, N.J., just 51 days after commencement of the case.
As the final step in its reorganization, the company earlier this week closed on its two exit loans. The first exit loan is a $70 million revolver arranged by Wells Fargo Capital Finance; the second is a $110 million term loan led by ORIX Finance. Together these facilities provide the company with approximately $25 million of undrawn liquidity.
"We are pleased to have the continued support of our lenders and stakeholders as we have completed the steps necessary to strengthen our balance sheet so we are poised for sustainable growth," said Robert Mullen, president and CEO. "Throughout this process, we have maintained our focus on our customers and we remain the same company with no change in facilities or capacities. We emerge from chapter 11 a well capitalized private company with a much improved operating profile."
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