FiberMark Inc, a leading producer of specialty fibre-based materials, announced yesterday that it has filed voluntary petitions to reorganize under Chapter 11 bankruptcy protection.
The Vermont-based company, hurt by a weak economy and recession in most of its key markets, also said it had obtained a commitment for $30 million of debtor-in-possession financing from GE Commercial Finance.
FiberMark added its German and UK operations were not included in the bankruptcy protection filing as those subsidiaries continued to perform well.
The company said a debt load from acquisitions, sales declines due to business divestitures and problems stemming from the consolidation of manufacturing facilities have also hurt business.
FiberMark said it hoped to emerge from bankruptcy protection by year-end and would continue normal operations of all its facilities during that time.
