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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
January 12, 2000 (January 11, 2000)
AMERICAN PAD & PAPER COMPANY
(Exact name of registrant as specified in its charter)
Commission file number 1-11803
Delaware 04-3164298
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
17304 Preston Road, Suite 700, Dallas, TX 75252-5613
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (972) 733-6200
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Item 5. Other Events.
On January 11, 2000, American Pad & Paper Company (OTCBB:AMPP) (AP&P)
announced that a group of its bondholders filed a petition yesterday with the
United States Bankruptcy Court in Delaware asking the court to place the Company
in an involuntary Chapter 11. The Company has 20 days to respond to this
petition and is not currently operating in Chapter 11.
This press release is incorporated herein as Exhibit 99.035
Exhibit
99.35 Press release by the Company dated January 11, 2000.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
American Pad & Paper Company
January 11, 2000 /s/ David N. Pilotte
Date David N. Pilotte
Vice President and Corporate Controller
Principal Accounting Officer
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Exhibit 99.035
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News Release
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For Immediate release CONTACT: Mark Lipscomb
(972) 733-5415
AMERICAN PAD & PAPER RESPONDS TO INVOLUNTARY CHAPTER 11 PETITION
FILED BY COMPANY'S BONDHOLDERS
Dallas, January 11, 2000 - American Pad & Paper Company
(OTCBB:AMPP) (AP&P) announced that a group of its bondholders filed a petition
yesterday with the United States Bankruptcy Court in Delaware asking the court
to place the Company in an involuntary Chapter 11. The Company has 20 days to
respond to this petition and is not currently operating in Chapter 11.
"While I am disappointed by the action taken, the Company will continue
to explore ways to reach a consensual resolution with its banks and bondholders.
We are prepared to pursue any alternative to protect the rights of all the
Company's stakeholders in response to this bondholder action," said James W.
Swent III, Chief Executive Officer of the Company. "The Company is exploring
with its bondholders the possibility of having this involuntary petition
dismissed. The Company will also consider converting this petition to a
voluntary Chapter 11 reorganization if necessary and is confident of arranging
alternative financing to ensure the liquidity required to continue to provide
quality products and service to our customers. Our bank group has expressed a
desire to support the company in the future and we are currently reviewing all
our financing alternatives."
The Company will continue to work toward the goal of debt reduction
through asset sales. Lazard Freres, the Company's financial advisor, has
received several indications of interest regarding the Williamhouse division and
other business assets. The Company is actively reviewing these inquiries.
American Pad & Paper Co., which invented the legal pad in 1888, is a
leading manufacturer and marketer of paper-based office products in North
America. Product offerings include envelopes, writing pads, file folders,
machine papers, greeting cards and other office products. The key operating
divisions of the Company are Williamhouse, AMPAD, and Creative Card. Company
revenues in 1998 were $662 million, additional information is available on the
Company's Website at http://www.americanpad.com.
This release contains forward-looking statements relating to future
results. Actual results may differ significantly from these statements due to
risk factors including, but not limited to the following: changing business and
economic conditions; changes in customer order patterns, including loss of key
customers, order cancellations or reduced sales; price and product competition;
manufacturing risks; raw material availability and price changes; excess or
obsolete inventory; the loss of key personnel and new product development,
including acceptance of new products. Additional information, which could affect
the Company's financial results, is included in the Company's filings with the
Securities and Exchange Commission.
