Court OKs auction for Appvion's assets
WILMINGTON, Del. (WLUK) – A federal bankruptcy court has approved an auction for the assets of Appvion.
The Appleton-based paper company previously declared bankruptcy.
The deadline for bids is April 19, according to court documents filed Monday.
Appvion has been working with a potential buyer, called a "stalking horse purchaser.” If no qualified bid other from that party is received, no auction will be conducted and the unnamed buyer will be deemed the successful bidder, the court order says.
When the stalking horse partner was announced, the company said it believed it was the “best path forward.”
"After evaluating options to address our capital structure and conducting extensive negotiations with our lenders, we determined that a sale would be the best path forward for Appvion," said Kevin Gilligan, Chief Executive Officer of Appvion. "We expect that the sale process will be seamless for our stakeholders and will not disrupt our operations. This process will bring a timely and efficient conclusion to our restructuring and ensure that our company emerges as a healthier, financially-stable business poised to compete long term in the specialty paper market and further invest in the innovation that has made Appvion a market leader."