SP Newsprint Goes For Ch. 11 With Lenders' Cash Collateral

Law360, Wilmington (November 17, 2011, 8:39 PM EST) -- Paper manufacturer SP Newsprint Holdings LLC kicked off its Chapter 11 case in Delaware on Thursday, winning approval to use its lenders’ cash collateral as the company prepares to sell off its assets under court protection.

The Georgia-based company and its subsidiaries filed for bankruptcy on Tuesday, blaming weak economic conditions and rising costs for raw materials.

At the hearing, Richard Stieglitz of Cahill Gordon & Reindel LLP, an attorney for SP Newsprint, said the bankruptcy would work toward a “going-concern sale designed to maximize value,”...
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