Exhibit 99.1
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4445 Lake Forest Drive, Cincinnati, OH 45242 [Crown Vantage Logo omitted]
News Release Printing,
Publishing, and
Specialty Papers
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For Immediate Release
For Further Information Contact:
At the Company:
Kent Bates 513-588-1716
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Crown Vantage Files Motion to Sell St. Francisville Mill
and Certain Related Assets
CINCINNATI, April 4, 2001 -- Crown Vantage Inc. (OTC Bulletin Board: CVANQ -
news) and its wholly owned subsidiary Crown Paper Co. (collectively, "Crown")
announced today that they have filed a motion with the United States Bankruptcy
Court in Oakland, California (the "Bankruptcy Court") seeking approval of a sale
of their integrated mill located in St. Francisville, Louisiana and certain
related assets to either CV Paper LLC ("CV Paper"), a newly formed entity
created by certain of Crown's existing bank lenders, or to any party with a
higher or better offer.
The terms of the proposed sale to CV Paper contemplate that the consideration
for the acquisition of the assets to be purchased include $85 million in cash to
satisfy in full all outstanding amounts under its Debtor-in-Possession loan
facility, the extinguishment of $147 million in outstanding creditor claims, the
issuance of certain subordinated notes in the aggregate principal amount of $27
million, approximately $3.9 million in deferred cash payments dedicated to the
payment of tax claims against the estate and $10 million to fund retiree medical
expenses on a modified basis for the next 10 years. The proposed agreement with
CV Paper also provides that CV Paper will provide $15 million in cash and
approximately $6 million in a one-year note to fund a chapter 11 plan, in
exchange for certain guaranteed distributions under the plan. In addition, CV
Paper would agree to assume certain Crown liabilities.
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Exhibit 99.1
The proposed sale to CV Paper, structured as a sale of assets under Section 363
of the Bankruptcy Code, is subject to the receipt of higher and better offers,
to Bankruptcy Court approval and certain other customary conditions. Pursuant to
an order of the Bankruptcy Court, any competing offers must be submitted prior
to April 20, 2001. A hearing before the Bankruptcy Court is scheduled for April
27, 2001, which hearing may be adjourned from time to time by the Bankruptcy
Court.
Crown Vantage and Crown Paper filed for Chapter 11 on March 15, 2000. Pursuant
to the Bankruptcy Code, they have continued to manage and possess all of their
properties not otherwise sold or abandoned.
Crown Vantage is a leading manufacturer of value-added papers for printing,
publishing and specialty packaging. The Company's diverse products are tailored
for the special needs of target markets. End users include specialty magazines
and catalogs, financial printing and corporate communications, packaging and
product labels and coffer filters. For more information, visit
www.crownvantage.com.
Safe Harbor Statement: This news release contains certain forward-looking
statements concerning Crown Vantage's positioning for the future. As required by
the Private Securities Litigation Reform Act of 1995, the company advises that
forward-looking statements are subject to risks and uncertainties that could
cause actual results to differ materially from those stated or inferred. These
include but are not limited to the inability to receive court approval and the
inability to successfully emerge from bankruptcy.
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