August 17 2010

The Newark Group, Inc. emerges from Chapter 11

DDJ Capital Management, LLC, on behalf of certain funds and/or accounts that it manages and/or advises, organized an ad hoc committee of holders of The Newark Group, Inc.’s senior unsecured subordinated notes due 2014 (the “Noteholders”) which supported the company in its financial restructuring efforts and several members of the ad hoc committee, including the DDJ funds and accounts, provided DIP financing to the company during the pendency of its prepackaged bankruptcy proceeding.

DDJ led the Noteholder group in structuring the terms of the reorganization and recovery for its Noteholder clients.  Upon the company’s emergence from bankruptcy, the Noteholders received 96.5% of the equity of the reorganized and de-levered company. In addition, the DDJ Noteholder clients voted in a majority of the members of the reorganized company's board of directors. On August 16, 2010, The Newark Group announced its successful emergence from Chapter 11 protection, 51 days after filing its prepackaged plan for reorganization. 

Founded in 1912 and based in Cranford, N.J., The Newark Group, Inc. is an integrated global producer of 100% recycled paperboard and paperboard products.