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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 21, 2000 (January 19, 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 3. Bankruptcy.
On January 19, 2000, American Pad & Paper Company (OTCBB:AMPP) (AP&P)
announced today that it has received Bankruptcy Court approval to, among other
things, pay employee wages, salaries and benefits during its voluntary
reorganization under Chapter 11. The Court also approved interim
debtor-in-possession (DIP) financing for immediate use by the Company for its
day-to-day operational needs. As previously announced, AP&P has received a
commitment for $65 million of DIP financing from a group of its current bank
lenders.
Exhibit
99.37 Press release by the Company dated January 19, 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 20, 2000 /s/ David N. Pilotte
Date David N. Pilotte
Vice President and Corporate Controller
Principal Accounting Officer
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Exhibit 99.037
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News Release
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For Immediate release CONTACT: Mark Lipscomb
(972) 733-5415
AMERICAN PAD & PAPER RECEIVES APPROVAL OF FIRST-DAY ORDERS IN CONNECTION
WITH VOLUNTARY REORGANIZATION UNDER CHAPTER 11
Dallas, January 19, 2000 - American Pad & Paper Company
(OTCBB:AMPP) (AP&P) announced today that it has received Bankruptcy Court
approval to, among other things, pay employee wages, salaries and benefits
during its voluntary reorganization under Chapter 11. The Court also approved
interim debtor-in-possession (DIP) financing for immediate use by the Company
for its day-to-day operational needs. As previously announced, AP&P has received
a commitment for $65 million of DIP financing from a group of its current bank
lenders.
"I am pleased with the progress made in the Bankruptcy Court and with
the support shown by our banking group to arrange immediate interim DIP
financing," said James W. Swent III, Chief Executive Officer. "We now have the
required financing in place to purchase and pay for goods and services from our
suppliers as we move forward."
"I am also appreciative of the overwhelming support we have received
from our major vendors as we begin the reorganization process," stated Mr.
Swent. "With our first-day motions approved and our interim DIP financing in
place, the Company can continue to provide our customers the products and
service levels they have come to expect. The Williamhouse sale process is on
track and moving forward. Staying focused on these activities will enable
American Pad & Paper to maximize the value of the business for all its
stakeholders."
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.
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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.
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