White Birch Paper Co. and its subsidiaries filed for Chapter 11 bankruptcy protection in the United States and Canada, saying it would continue operating as it works with lenders on a financial restructuring.
The Greenwich-based company is the second largest manufacturer of newsprint in the country, with its U.S. subsidiary Bear Island Paper based in Ashland, Va. White Birch blamed its financial problems on a decline in demand and prices for newsprint, as well as the increased strength of the Canadian dollar.
White Birch is led by CEO Peter Brant, who separated last year from the model and actress Stephanie Seymour.
“This process is about fixing our capital structure,” said Christopher Brant, president of White Birch, in a statement. “We remain committed to delivering the highest quality product to our many valued customers, and through this financial restructuring, we believe we will be better positioned to continue to do so well into the future. The filing today is an important step toward ensuring White Birch”™s future as a strong competitor with a healthy balance sheet.”
White Birch is seeking approval in the United States and Canada for a $140 million debtor-in-possession financing package with certain of its lenders, which is expected to provide more than adequate liquidity during the restructuring. The company also asked for court permission to continue employee and customer programs without interruption.
