Smart Papers withdraws original asset sale motion amid plans to sell to Plainfield under plan term sheet

By Caroline Salls

Pittsburgh, Sept. 7 - Smart Papers, LLC withdrew its original request for approval of the sale of substantially all of its assets after it agreed to a plan of reorganization term sheet under which Plainfield Special Situations Master fund Ltd. will buy the company for $40 million, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

On Aug. 16, the company entered into the term sheet under which it will sell the company to Plainfield - and subsequently canceled the auction for the proposed sale of substantially all of its assets.

Under the term sheet, the plan must be confirmed by Nov. 20. If the plan is not timely confirmed and consummated, Smart Papers will pay Plainfield a 3% termination fee and reimbursement for reasonable fees and expenses.

Smart Papers, a Hamilton, Ohio-based paper manufacturer, supplier and marketer, filed for bankruptcy on March 21. Its Chapter 11 case number is 06-10269.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.