Smart Paper’s Reorganization Plan Approved

The U.S. Bankruptcy Court for the District of Delaware has approved Smart Papers LLC’s reorganization plan which will allow the specialty papers company to emerge from Chapter 11 by the end of December. Under the plan, 92.5% of the company’s shares will be issued to an affiliate of Plainfield Asset Management LLC, which assumed as much as $40 million of Smart Papers’ debt in August. The remaining shares will be used to pay off unsecured claim holders. Smart Papers was created in 2001 when investment group Sun Capital Partners bought Champion’s former Hamilton mill from International Paper.