MEMPHIS, TN—International Paper (IP) has strengthened its balance sheet by more than $7 billion since embarking on a transformation plan in mid-2005 aimed at becoming a more focused and profitable company. IP has reduced its debt by approximately $6.2 billion from roughly $13.4 billion. A majority of the debt reduction was funded through divestiture proceeds…
HAMILTON, OH—December 20, 2006—SMART Papers LLC today reported that the U.S. Bankruptcy Court for the District of Delaware has approved and confirmed its business reorganization plan, paving the way for emergence from Chapter 11 upon the company’s sale to an affiliate of Plainfield Asset Management LLC, a Greenwich, CT-based investment advisor. The SMART Papers Plan of Reorganization was approved by the court yesterday in Wilmington, Del. The plan was accepted by an overwhelming majority of voting creditors. It is also supported by SMART Papers’ secured lender, its unsecured creditors committee, Memphis-based International Paper Co. and many other important creditor groups. “We’re very pleased with
WESTMONT, IL--On the heels of its sale to a joint investment company, MAN Roland Druckmaschinen saw a Q1 US$37.9 million increase (to $17.6 million) in operating results over the same period in 2005. On the sheetfed side, MAN was able to break even with a $32.8 million gain. The web business increased to $17.6 million,…
STAMFORD, CT—In an effort to turn around its lackluster performance, International Paper (IP) revealed a transformation plan that is designed to improve returns, strengthen the balance sheet and return cash to shareholders. The plan includes narrowing the company's portfolio to two key platform businesses—uncoated papers and industrial/consumer packaging—improving shareholder value via mill realignments in those businesses, and exploring strategic options that could entail selling or spinning off other businesses. Uncoated paper and packaging accounts for more than 70 percent of IP's sales. Among the IP assets being re-evaluated: IP's 50 percent stake in Carter Holt Harvey, the coated and supercalendered papers business (including the coated groundwood
BY MARK SMITH Moving in fits and starts is about the best that can be said for the paper industry's attempts to rebound from its recent market woes. Across most grades, prices have been seen to be on the rise, but also continuing to decline. In both cases, the change has been relatively minor. The quarterly financial reports from major manufacturers again tell the story. Common themes include a continuation of competitive market conditions and rising costs. "This has been a particularly difficult quarter for the company," reports Sappi CEO Jonathan Leslie. "Our third quarter results were achieved against a background of lower pulp
Paper prices and production drop as a slow U.S. economy continues to plague suppliers. BY CAROLINE MILLER A flagging U.S. economy, an increase in offshore paper and the never-ending merger and acquisition dance among paper producers is continuing to keep the price of paper low, reports NAPL Chief Economist Andrew Paparozzi. In his latest survey of printers, 72.5 percent of those polled responded that paper prices are stable. However, what is more interesting is the growing number of printers that are reporting falling paper prices. In June 2001, 18.5 percent indicated prices were falling. That number has increased progressively from last summer when
On the foreseeable horizon, paper prices should remain moderate—but don't let the stable situation make for stingy expenditure budgets for 1999. The word is caution, not complacency, for the market. BY MARIE RANOIA ALONSO Welcome to September. For many, it's a time to establish budgets for purchasing expenditures for the following year. Little doubt, in most commercial printing operations, paper is the most paramount consumable purchase for which to anticipate, sparking many a meeting or hallway conference on what to expect from the paper mills and distributors regarding pricing and availability. How to prepare? Two words: Remain conservative. Bruce Janis, president of MSPGA: Management Science for the Publishing
