Canada’s Cascades Inc. bested Black Diamond Capital Management LLC at a bankruptcy auction with a $207 million offer for the assets of Orchids Paper Products Co., a maker of tissue and toilet paper, WSJ Pro Bankruptcy reported. The auction started Thursday and closed at 3 a.m. Friday, according to a lawyer involved in the case. Cascades is already one of the largest tissue manufacturers in North America, as well as Canada’s largest recycled paper collector. Orchids filed for chapter 11 bankruptcy protection in April, plagued by an overload of debt and a new state-of-the-art facility in South Carolina that was having startup issues. The success of the bid by a U.S. unit of Cascades was posted early Friday on the docket of Orchids’ chapter 11 case in the U.S. Bankruptcy Court in Wilmington, Del. The deal also includes an agreement to shoulder some of Orchids’ existing bills, including its bankruptcy financing, according to the notice.
