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Two Paper and Print Companies Win Restructuring Plan Confirmation

This issue of the Bankruptcy Update focuses on recent restructurings in the paper and printing industry. The column delves into the bankruptcy proceedings of Appvion and Cenveo who won confirmation of their respective plans this month.

‘Appvion Inc.’

(Bankr. D. Del. Case No. 17-12082)

On Oct. 1, 2017, specialty paper maker Appvion Inc. and its affiliates filed petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.

The debtors sought relief in bankruptcy court following a long term decline in demand for paper products as the marketplace shifted to digital forms. The debtors’ sales of carbonless copy paper used in government, retail, financial and manufacturing applications, which comprise 40 percent of the debtors’ business, fell drastically from approximately $570 million in 2014 to $530 million in 2016. In addition to carbonless copy paper, the debtors produce a line of thermal paper used in retail receipts.

Trucking companies struggle to compete for workers despite good pay and benefits

Trying to find workers

For the past six months to a year, Nate McCourt has noticed it's been difficult for his company to hire drivers. 

McCourt is the logistics director for Franklin Logistics and Development in Chambersburg, which offers a variety of trucking services throughout the region. He said there were more drivers looking for work when he joined the company about four years ago, but now he sees less applicants. He added the organization has been fortunate enough not to have experienced a lot of driver turnover, which can be an issue for other carriers. 

Fewer drivers to transport freights can mean problems for clients and consumers. 

Because there may not always be a truck available like there was a few years ago, shipments could experience delays, according to McCourt. He said rates have also gone up significantly in the last year, which translates into higher costs for customers wanting to move freights. 

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