Paperboard Maker Newark Sails To Ch. 11 Finish Line

Law360, New York (August 2, 2010, 3:52 PM EDT) -- Bankrupt recycled paperboard maker The Newark Group Inc. has won court approval for a prepackaged restructuring plan designed to shave off about $200 million in debt, boasting broad support for the proposal from among creditor constituencies.

The Cranford, N.J.-based manufacturer won confirmation for its plan Friday in the U.S. Bankruptcy Court for District of New Jersey and expects to emerge from Chapter 11 protection by mid-August, the company announced.

Although equity holders and some classes of creditors are not expected to receive the full value of...
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