Recycled Paper Greetings' stock sale break-up fee, expense reimbursement approved

By Caroline Salls

Pittsburgh, Jan. 13 - Recycled Paper Greetings, Inc. received court approval of the break-up fee and expense reimbursement to be paid if American Greetings Corp. is not the high bidder for all of the outstanding stock of RPG Holdings, Inc., according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, if American Greetings is not the high bidder, Recycled Paper will pay it a $4.12 million break-up fee and reimburse up to $1 million of its sale-related expenses.

As previously reported, American Greetings has agreed to buy the stock for a purchase price that will include a combination of $54.7 million of new 7 3/8% notes due in 2016 and up to $18.4 million of cash, in addition to a $44.2 million investment previously made by American Greetings in July.

Recycled Paper Greetings, a Chicago-based greeting card company, made a pre-packaged bankruptcy filing on Jan. 2. Its Chapter 11 case number is 09-10002.

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