Item
1.03. Bankruptcy or Receivership
On
December 2, 2005, FiberMark issued a press release (Exhibit 99.1) reporting
that
the U.S. Bankruptcy Court for the District of Vermont has confirmed its Plan
of
Reorganization, setting the stage for the company’s emergence from chapter 11 as
a private company in early 2006. Also on December 2, subsequent to the
confirmation hearing, the Court issued an order confirming the Plan for
FiberMark’s chapter 11 proceedings, Case No. 04-10463 cab, filed March 30, 2004.
In addition, the Court issued two notices on December 5, 2005, including
Notice
of the Confirmation Order and Bar Date Deadlines and Notice of Distribution
Record Date, all of which are available on the company’s Web site
at:
http://www.fibermark.com/restructure/indexRestructure.htm#courtOrders
These
exhibits are filed herewith and shall be deemed “filed” for purposes of Section
18 of the Securities Exchange Act of 1934.
Item
9.01 Financial Statements and Exhibits
Exhibit
99.1 Press
Release Dated December 2, 2005
Bankruptcy
Court Confirms FiberMark’s Reorganization Plan
—Company
Set to Emerge from Chapter 11 in Early 2006
BRATTLEBORO,
VERMONT, December 2, 2005—FiberMark, Inc. (OTCBB: FMKIQ) today announced that
the U.S. Bankruptcy Court for the District of Vermont has confirmed its Plan
of
Reorganization, setting the stage for the company’s emergence from chapter 11 as
a private company in early January 2006.
The
Plan
of Reorganization dated November 1, 2005, received strong support among its
creditors in voting that concluded in November. Under the Plan, general
unsecured creditors, including most bondholders and trade creditors, will
recover approximately 70% of their claims, and the company expects to emerge
with funded debt of up to approximately $88 million, representing one-fourth
of
the company's pre-chapter 11 debt level. Some creditors elected to receive
a
combination of stock and cash, with an approximate total recovery value of
62%.
Under the Plan, the company's existing common stock will be cancelled, and
public trading of that stock is expected to cease prior to or no later than
the
date of chapter 11 emergence.
As
earlier reported, FiberMark has received exit financing commitments that
include
funding for the cash distribution called for in the Plan, funded by Silver
Point
Finance LLC, and revolving credit facilities for the company's North American
and German operations, provided by GE Commercial Finance. GE also extended
the
debtor-in-possession ("DIP") credit facility through January 31, 2006, to
ensure
financing coverage until emergence.
According
to Alex Kwader, chief executive officer, confirmation represents the final
step
in the company’s chapter 11 financial reorganization process. “When the Plan
becomes effective next month, we will have achieved our objectives to emerge
as
a stronger company strategically, operationally and financially, with a debt
load appropriate for our business,” Kwader said. “We deeply appreciate the
support of our customers, vendors and employees throughout this process,
and
look forward to continuing to meet their needs and expectations as a streamlined
and strengthened FiberMark in the years ahead.”
FiberMark,
headquartered in Brattleboro, Vt., is a leading producer of specialty
fiber-based materials meeting industrial and consumer needs worldwide, operating
11 facilities in the eastern United States and Europe. Products include filter
media for transportation and vacuum cleaner bags; base materials for specialty
tapes, wallpaper, building materials, sandpaper and graphic arts applications;
and cover/decorative materials for office and school supplies, publishing,
printing and premium packaging.
This
document contains forward-looking statements. Actual results may differ
depending on the economy and other risk factors discussed in the company's
Form
10-K/A as filed with the SEC on May 4, 2005, which is also accessible on
the
company's Web site.
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