Smart Papers debtor gets court OK for bid procedures for $2.7 million Wisconsin facility asset sale

By Caroline Salls

Pittsburgh, June 23 - Smart Papers, LLC debtor PF Papers, LLC obtained court approval of the bidding procedures for the proposed $2.7 million sale of substantially all of the assets at its Park Falls, Wis., facility to stalking horse bidder Flambeau River Papers, LLC, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

Flambeau paid a $500,000 deposit.

Other bids must include a 10% deposit, to be increased to 15% if the bid is accepted by PF Papers.

Bids other than Flambeau's must be for at least $2.83 million, which includes a $102,000 break-up fee and $25,000 initial overbid.

The break-up fee will be paid to Flambeau if it is not the high bidder.

Each bid at auction must be for $50,000 more than the previous bid.

The auction will be held July 12. The sale hearing is scheduled for July 13.

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.

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