DELAWARE (WBAY) - A United States Bankruptcy Court has given Appleton-based Appvion the go ahead to accept bids for its assets.
In February, Appvion announced it had an agreement with a group of lenders and asked the court for approval to sell its assets worth $325 million plus liabilities.
Appvion filed for Chapter 11 bankruptcy protection last October and announced on Nov. 9 that it would consolidate most of its carbonless paper coating and rewinding operations to a pulp and paper mill in Roaring Spring, Penn., taking the Appleton plant's sheeting operations with them.
The bankruptcy court has set a bid deadline for April 19. If another bidder comes forward with a better offer than the current agreement an auction will be held April 23 in New York City.
In February, Action 2 News reported how local Appvion employees are losing their jobs and part of retirement funds.
In a successful effort to save what is now Appvion, those who worked for the paper company back in 2001 invested in an Employee Stock Ownership Plan to the tune of more than a hundred million dollars.
An Appvion official tells us while the company notified the ESOP investors the plan is most likely worth nothing under the proposed sale, no final determination has been made yet and won't be decided until the sale is final.