Marcal Paper Company

Client

Headquartered in Elmwood Park, NJ, Marcal Paper Company (the “Company”) is a tissue and paper product manufacturer with revenue in excess of $250 million. The Company provides a full line of tissue products (e.g. napkins, facial tissue, tissue paper) for both the away from home and in-home markets. Marcal produces both branded and private label products.

Challenge

For several years leading up to the bankruptcy filing, the Company struggled with a number of critical issues, including stagnant revenues, a spiraling cost structure, dwindling liquidity, the loss of confidence of its secured lender and trade vendors. Ultimately, the Company exhausted its liquidity and filed for bankruptcy protection in November 2006 in Newark, NJ. Bridge was engaged by the Official Committee of Unsecured Creditors (the “UCC”) to assist in developing strategies to maximize the overall recovery to unsecured creditors.

Solution

The Bridge team closely monitored the Company’s post-petition financial and operational results and provided timely analysis to the UCC and its counsel. Bridge advised the UCC on the status of the Company’s ongoing operational improvement initiatives. Bridge also reviewed and actively participated in the sale process to identify potential acquirers and evaluate the openness and effectiveness of the Company’s overall marketing effort. As part of this sale process, Bridge provided the UCC an independent indication of value. Additionally, Bridge reviewed and analyzed selected insider transactions.

Results

The Company completed the sale of substantially all assets and recently obtained confirmation of its Chapter 11 plan of liquidation. The unsecured creditors will receive proceeds sufficient to pursue a wide array of litigation. Working closely with the UCC’s counsel, Bridge continues to investigate and analyze potential preference payments made by the Company. This case is on-going.