Marcal Paper Mills' disclosure hearing adjourned to March 14

By Jennifer Lanning Drey

Portland, Ore., Feb. 22 - Marcal Paper Mills, Inc.'s hearing for approval of the disclosure statement for its plan of reorganization was adjourned to March 14, according to an attorney.

The hearing was originally scheduled for Friday at the U.S. Bankruptcy Court for the District of New Jersey.

Marcal's plan of reorganization is based on the sale of Marcal's assets to second-lien lender agent NexBank SSB. However, the sale, which the court approved on Jan. 18, came under fire last month when the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International (USW) asked the court to halt the sale to allow for arbitration of an alleged breach of the union's collective bargaining agreement.

Marcal Paper Mills, an Elmwood Park, N.J., manufacturer and distributor of bath tissue, kitchen towels, napkins and facial tissue, filed for bankruptcy on Nov. 30, 2006 in the U.S. Bankruptcy Court for the District of New Jersey. Its Chapter 11 case number is 06-21886.

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