Crown Vantage Files Motion to Sell St. Francisville Mill And Certain Related Assets

Apr 04, 2001, 01:00 ET from Crown Vantage Inc.

    CINCINNATI, April 4 /PRNewswire/ -- Crown Vantage Inc.
 (OTC Bulletin Board:   CVANQ) and its wholly owned subsidiary Crown Paper Co.
 (collectively, "Crown") announced today that they have filed a motion with the
 United States Bankruptcy Court in Oakland, California (the "Bankruptcy Court")
 seeking approval of a sale of their integrated mill located in
 St. Francisville, Louisiana and certain related assets to either CV Paper LLC
 ("CV Paper"), a newly formed entity created by certain of Crown's existing
 bank lenders, or to any party with a higher or better offer.
     The terms of the proposed sale to CV Paper contemplate that the
 consideration for the acquisition of the assets to be purchased include
 $85 million in cash to satisfy in full all outstanding amounts under its
 Debtor-in-Possession loan facility, the extinguishment of $147 million in
 outstanding creditor claims, the issuance of certain subordinated notes in the
 aggregate principal amount of $27 million, approximately $3.9 million in
 deferred cash payments dedicated to the payment of tax claims against the
 estate and $10 million to fund retiree medical expenses on a modified basis
 for the next 10 years.  The proposed agreement with CV Paper also provides
 that CV Paper will provide $15 million in cash and approximately $6 million in
 a one-year note to fund a chapter 11 plan, in exchange for certain guaranteed
 distributions under the plan.  In addition, CV Paper would agree to assume
 certain Crown liabilities.
     The proposed sale to CV Paper, structured as a sale of assets under
 Section 363 of the Bankruptcy Code, is subject to the receipt of higher and
 better offers, to Bankruptcy Court approval and certain other customary
 conditions.  Pursuant to an order of the Bankruptcy Court, any competing
 offers must be submitted prior to April 20, 2001.  A hearing before the
 Bankruptcy Court is scheduled for April 27, 2001, which hearing may be
 adjourned from time to time by the Bankruptcy Court.
     Crown Vantage and Crown Paper filed for Chapter 11 on March 15, 2000.
 Pursuant to the Bankruptcy Code, they have continued to manage and possess all
 of their properties not otherwise sold or abandoned.
     Crown Vantage is a leading manufacturer of value-added papers for
 printing, publishing and specialty packaging.  The Company's diverse products
 are tailored for the special needs of target markets.  End users include
 specialty magazines and catalogs, financial printing and corporate
 communications, packaging and product labels and coffer filters.  For more
 information, visit www.crownvantage.com .
     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 inability to receive court approval
 and the inability to successfully emerge from bankruptcy.
 
 

SOURCE Crown Vantage Inc.
    CINCINNATI, April 4 /PRNewswire/ -- Crown Vantage Inc.
 (OTC Bulletin Board:   CVANQ) and its wholly owned subsidiary Crown Paper Co.
 (collectively, "Crown") announced today that they have filed a motion with the
 United States Bankruptcy Court in Oakland, California (the "Bankruptcy Court")
 seeking approval of a sale of their integrated mill located in
 St. Francisville, Louisiana and certain related assets to either CV Paper LLC
 ("CV Paper"), a newly formed entity created by certain of Crown's existing
 bank lenders, or to any party with a higher or better offer.
     The terms of the proposed sale to CV Paper contemplate that the
 consideration for the acquisition of the assets to be purchased include
 $85 million in cash to satisfy in full all outstanding amounts under its
 Debtor-in-Possession loan facility, the extinguishment of $147 million in
 outstanding creditor claims, the issuance of certain subordinated notes in the
 aggregate principal amount of $27 million, approximately $3.9 million in
 deferred cash payments dedicated to the payment of tax claims against the
 estate and $10 million to fund retiree medical expenses on a modified basis
 for the next 10 years.  The proposed agreement with CV Paper also provides
 that CV Paper will provide $15 million in cash and approximately $6 million in
 a one-year note to fund a chapter 11 plan, in exchange for certain guaranteed
 distributions under the plan.  In addition, CV Paper would agree to assume
 certain Crown liabilities.
     The proposed sale to CV Paper, structured as a sale of assets under
 Section 363 of the Bankruptcy Code, is subject to the receipt of higher and
 better offers, to Bankruptcy Court approval and certain other customary
 conditions.  Pursuant to an order of the Bankruptcy Court, any competing
 offers must be submitted prior to April 20, 2001.  A hearing before the
 Bankruptcy Court is scheduled for April 27, 2001, which hearing may be
 adjourned from time to time by the Bankruptcy Court.
     Crown Vantage and Crown Paper filed for Chapter 11 on March 15, 2000.
 Pursuant to the Bankruptcy Code, they have continued to manage and possess all
 of their properties not otherwise sold or abandoned.
     Crown Vantage is a leading manufacturer of value-added papers for
 printing, publishing and specialty packaging.  The Company's diverse products
 are tailored for the special needs of target markets.  End users include
 specialty magazines and catalogs, financial printing and corporate
 communications, packaging and product labels and coffer filters.  For more
 information, visit www.crownvantage.com .
     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 inability to receive court approval
 and the inability to successfully emerge from bankruptcy.
 
 SOURCE  Crown Vantage Inc.