Appleton has announced that it and certain of its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code.



  • Appleton, Wis.-based coated paper manufacturer Appvion Inc. has announced that it and certain of its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code.
  • Appvion has obtained a commitment for $85 million in new debtor-in-possession financing and expects to continue operations as usual.

  • In addition, we lowered the issue-level rating on the company's first-lien 
    term loan to 'D' from 'B-'. The recovery rating on the first-lien term loan is 
    '1', indicating our expectation for very high (90%-100%; rounded estimate: 
    90%) recovery at the time of the chapter 11 filing. We also lowered the 
    issue-level rating on the company's second-lien secured notes to 'D' from 
    'CC'. The recovery rating on the second-lien secured notes is '6', indicating 
    our expectation for negligible (0%-10%; rounded estimate: 0%) recovery at the 
    time of the bankruptcy filing.