Newark Group Inches Toward Prepackaged Ch. 11

Law360, New York (May 10, 2010, 3:17 PM EDT) -- Recycled paperboard products maker The Newark Group Inc. announced Monday that it had reached an agreement with its primary creditors to slash about $200 million in unsecured debt as part of a prepackaged Chapter 11 filing.

Cranford, N.J.-based Newark Group said holders of more than three-quarters of the company's outstanding 9.75 percent unsecured senior subordinated notes have agreed to the proposed prepackaged plan. Those noteholders would receive 96.5 percent of the reorganized Newark Group's stock once the plan became effective.

The debt-for-equity exchange would reduce Newark...
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