Former Appvion’s second amended plan of liquidation confirmed by court

By Caroline Salls

Pittsburgh, Aug. 14 – Old Apco, Inc., formerly Appvion, Inc., obtained confirmation of its second amended plan of liquidation, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Appvion obtained court approval to sell substantially all of its assets to a group of lenders for $325 million.

Under the plan, administrative expense claims, priority tax claims and other priority claims will be paid in full in cash.

Debtor-in-possession financing claims are deemed to have been satisfied in accordance with the lenders’ credit bid.

Holders of other secured claims will either be paid in full in cash or receive the collateral securing the claim.

Holders of second-lien note claims will receive a share of warrants and interests in a liquidating trust to be established under the plan.

Holders of general unsecured claims will receive a share of a cash pool and beneficial interests in the liquidating trust.

Holders of equity interests and intercompany claims will receive no distribution.

Appvion is an Appleton, Wis., producer of thermal, carbonless, security, inkjet, digital specialty and colored papers. The company filed for bankruptcy on Oct. 1, 2017 under Chapter 11 case number 17-12082.

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