SOURCE: Port Townsend Paper Corporation

March 01, 2007 18:00 ET

Port Townsend Paper Corporation Receives Final Court Approval on DIP Financing, Files Plan of Reorganization, Disclosure Statement

PORT TOWNSEND, WA -- (MARKET WIRE) -- March 1, 2007 -- Port Townsend Paper Corporation today announced that it has received final approval on its debtor-in-possession ("DIP") financing from the U.S. Bankruptcy Court for the Western District of Washington (the "Court"). The Company also announced that yesterday it filed its Plan of Reorganization (the "Plan") and Disclosure Statement with the Court. The Plan provides for the Company's reorganization and continuation of its business operations.

"Our organization is focused on completing this reorganization as expediently as possible," said Timothy P. Leybold, Chief Financial Officer. "The filing of our Plan and Disclosure Statement within 30 days from entering Chapter 11 is evidence of our commitment to a 'fast track' emergence from bankruptcy with a revitalized balance sheet."

The Company's Plan calls for, among other things, the repayment in full of logger's liens and numerous other priority claims from suppliers promptly when the Plan is effectuated. The Company will continue to negotiate with various creditor constituencies in an effort to achieve a consensual restructuring.

The DIP financing, initially approved by the Court on an interim basis during motions held January 31st, provides the Company with a $13 million revolving line of credit to finance the Company's expected liquidity needs through the resolution of its Chapter 11 case.

Since filing for reorganization under Chapter 11 on January 29th, the Company has received support from numerous vendors and customers alike.

As previously disclosed, the Company's Canadian subsidiaries are not part of the Company's Chapter 11 filing.

Copies of court documents filed in connection with the Chapter 11 cases are available via the Court's website at www.wawb.uscourts.gov. Please note that a PACER password is required to access the documents via the Court's website.

The Port Townsend Paper family of companies employs approximately 800 people and annually produces more than 320,000 tons of unbleached Kraft pulp, paper and linerboard at its mill in Port Townsend, Washington. The Company also manufactures approximately 1.8 billion square feet of corrugated products annually at its three Crown Packaging Plants and two BoxMaster Plants located in British Columbia and Alberta. For more information on Port Townsend Paper Corporation, please see the Company's websites at www.ptpc.com and www.crownpackaging.com.

Some of the statements in this press release are forward-looking statements. Forward-looking statements include statements about our future financial condition, our industry and our business strategy. Statements that contain words such as "will," "should," "anticipate," "believe," "expect," "intend," "estimate," "hope" or similar expressions, are forward-looking statements. These forward-looking statements are based on the current expectations of Port Townsend Paper Corporation, its parent, PT Holdings Company, Inc. and all of its subsidiaries. Because forward-looking statements involve inherent risks and uncertainties, the plans, actions and actual results Port Townsend Paper Corporation, PT Holdings Company, Inc. and its subsidiaries, could differ materially. Among the factors that could cause plans, actions and results to differ materially from current expectations include the following: the impact of general economic conditions; containerboard and corrugated products general industry conditions, including competition, product demand and product pricing; fluctuation in wood fiber and recycled fiber costs; fluctuations in purchased energy costs; and legislative or regulatory requirements, particularly concerning environmental matters.

Contact Information


  • Contact:
    Timothy P. Leybold
    Port Townsend Paper Corporation
    (360) 385-3170