Arandell Holdings files bankruptcy to sell business as going concern

By Caroline Salls

Pittsburgh, Aug. 13 – Arandell Holdings, Inc. filed Chapter 11 bankruptcy Thursday in the U.S. Bankruptcy Court for the District of Delaware.

President, chief executive officer and sole director Bradley J. Hoffman said in a statement filed with the court that working capital restrictions were complicated by additional business challenges, including scrap paper values, customer bankruptcies and delinquent accounts, paper margins, paper and postal price increases and potential fourth-quarter 2019 sales opportunities that failed to materialize.

The company said it has decided to consolidate its operations in Wisconsin, sell or close one of its plants located in Kentucky and sell its business under a court-supervised auction process in order to enable its operations to continue as a going concern.

In conjunction with the filing, Arandell obtained a commitment for a $7.5 million ABL debtor-in-possession facility. The company will also establish a factoring facility under which it will sell accounts receivable.

CIBC Bank USA is the post-bankruptcy lender agent.

The DIP financing will mature on Nov. 16.

Interest on revolving loans will accrue at the Base rate plus 375 basis points, and interest on term loans at the Base rate plus 425 bps.

According to court documents, Arandell has $10 million to $50 million in assets and $100 million to $500 million in debt.

The company’s largest unsecured creditors are Graphic Arts Industry JT Pension Plan of Washington, D.C., with a $98.6 million trade union pension withdrawal liability claim; Graphic Communication Conference of Carol Stream, Ill., with a $76.22 million pension withdrawal liability claim; U.S. Small Business Administration of Milwaukee, with a $7.77 million PPP loan program claim; Horizon Paper Co. Inc. of Carol Stream, Ill., with a $5.2 million accounts payable claim; and Trend Offset Printing Services of Los Alamitos, Calif., with a $1.95 million guaranty claim.

Young Conaway Stargatt & Taylor, LLP is representing the company in its Chapter 11 proceedings.

Menomonee Falls, Wis.-based Arandell operates a web offset printer. The Chapter 11 case number is 20-11941.

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