FiberMark Announces court decisions regarding its chapter 11 process � Process Established for Plan of Reorganization Filings � Examiner to be Appointed to Review Intercreditor and Associated Issues april 20, 2005
BRATTLEBORO, Vt.�April 20, 2005�FiberMark, Inc. (OTCBB: FMKIQ) today announced that the U.S. Bankruptcy Court, District of Vermont, has issued orders on various matters related to the company's chapter 11 financial reorganization.
In one of the orders, the Court directed the U.S. Trustee to appoint an independent examiner to investigate, over the next 45 days, intercreditor disputes and associated issues. The Court set a $200,000 spending cap on the examination process, ordered that the Examiner submit written findings by June 8, and set a status conference date of June 15 to review the case status and the Examiner's report and recommendations.
In another order, the Court established procedures, designed to maintain an orderly plan process, which limit the filing of competing plans of reorganization. The Court held that (a) during the Examiner's investigation period, only the company is authorized to file a plan, provided that the company has the unanimous support of the Creditors' Committee, and (b) after the Examiner's investigation period, the company is authorized to file a plan with or without such support, as may other parties. FiberMark said that if it is unable to obtain the unanimous support of the Creditors' Committee within this period, the company intends to thereafter file a plan without such unanimous support. Any proposed disclosure statements and plans of reorganization must be filed no later than August 8.
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 www.fibermark.com.