Appleton Papers gets necessary consent in solicitation for 11¼% notes

By Jennifer Chiou

New York, Jan. 28 - Appleton Papers Inc. announced that it obtained consents from holders of a majority of its 11¼% second-lien notes due 2015, enough to amend the note indenture.

Appleton plans to execute a supplemental indenture.

The company wanted to amend the indenture governing the notes in order to:

• Allow its employee stock ownership plan to reduce its ownership of Appleton's parent company, Paperweight Development Corp., to less than 50% without requiring Appleton to make a tender offer for the notes; and

• Allow a capital contribution or operating lease of the black liquor assets located at the company's Roaring Spring, Pa., facilities to a newly formed joint venture with a third party in exchange for a minority equity interest in that joint venture.

The company previously said it continues to explore strategic options related to the transactions contemplated by these amendments.

Appleton Papers is a paper manufacturing company based in Appleton, Wis.

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