FiberMark Announces Continuance of confirmation Hearing on FiberMark's Plan of Reorganization as Negotiations among Top Bondholders Continue on Certain Plan-related Corporate Control and Governance Issues March 15, 2005
BRATTLEBORO, Vt.�March 15, 2005�FiberMark, Inc. (OTCBB: FMKIQ) today announced that it has notified the Court that it will not proceed with the hearing to confirm its Plan of Reorganization previously scheduled to take place on March 17, 2005, because its three largest top bondholders remain unable to agree among themselves on certain Plan-related corporate control and governance issues. FiberMark and its advisors continue their efforts to facilitate an agreement among the three bondholders as they seek to negotiate mutually acceptable terms related to the New Common Stock and the New Notes associated with the Plan. As previously indicated, the disagreements in question are not between the company and the bondholders but among the bondholders themselves.
FiberMark is also assessing various alternatives, including withdrawing the Plan, modifying certain aspects of the Plan and other alternatives that would enable the company to complete its financial reorganization and emerge from chapter 11. The company intends to determine which of the alternatives it will pursue as soon as practicable, unless agreement is reached among these bondholders in the very near future. Should these bondholders reach agreement, the company would seek a confirmation hearing date as soon as possible.
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, electrical and graphic arts applications; wallpaper, building materials and sandpaper; 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 as filed with the SEC on March 30, 2004, which is accessible on the company's Web site at ***.fibermark.com.