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EXHIBIT 99.1
CROWN VANTAGE ANNOUNCES
TERMINATION OF LETTER OF INTENT
CINCINNATI, October 9, 2000 - Crown Vantage Inc. (OTC Bulletin Board: CVANQ) and
its wholly owned subsidiary Crown Paper Co., announced today that the letter of
intent dated September 11, 2000, between Crown Acquisition Corporation ("CAC")
and Crown Paper has been terminated by CAC. As previously announced, the letter
of intent contemplated the sale to CAC of substantially all of the assets of
Crown Paper. CAC stated that it terminated the letter of intent because the
definitive agreement had not been executed by September 27, 2000, and alleged
that certain conditions precedent could not be satisfied by Crown Paper. Despite
terminating the letter of intent, CAC has expressed interest in acquiring the
St. Francisville mill.
Bob Olah, CEO of Crown Vantage and Crown Paper, commented, "While we are
disappointed that the CAC transaction will not progress as planned, we feel that
certain requested changes to the letter of intent did not yield fair market
value for the assets being discussed. However, we are encouraged by the interest
shown by other parties, not only in the mills that CAC was to purchase, but in
all of the Company's mills. We are currently working with these parties in the
diligence process." Olah continued, "The Crown management team remains focused
on our responsibility to negotiate a deal or package of deals that delivers
maximum value and provides both the ability to continue serving our customers
and the avenue to emerge from bankruptcy."
Prior to the termination of the letter of intent, Crown sought and received an
extension of the exclusivity period until December 25, 2000, for producing a
plan of reorganization.
Safe Harbor Statement: This news release contains certain forward-looking
statements concerning Crown Vantage's positioning for the future. As required by
the Private Securities Litigation Reform Act of 1995, the company advises that
forward-looking statements are subject to risks and uncertainties that could
cause actual results to differ materially from those stated or inferred. These
include, but are not limited to, the failure to reach equitable agreement with
currently interested parties for the sale of portions or all of the company's
assets, the inability to gain the endorsement of stakeholders or the court for
prospective agreement(s), or the inability to complete a plan of reorganization.
