Appvion Inc., which operates a paper and pulp mill in Blair County, Pa., has been approved by a U.S. bankruptcy court to sell all its assets by the end of May, WJACTV.com reported. The company said that the group buying the assets, Franklin Advisers Inc., submitted a stalking-horse bid in February for $340 million plus the assumption of substantial liabilities, including Appvion's contractual obligations. The transaction will reduce Appvion's debt to from $585 million to less than $175 million. Appvion filed for chapter 11 protection in October and said it would be cutting 200 jobs at its Appleton, Wis., location and bring some of the work to Roaring Spring, Pa. The sale does not include the assumption of the employee stock ownership plan or its pension plan, and the ESOP will be terminated following the completion of the sale.
