SSG Client Transactions

Title

Marcal Paper Mills, Inc.

Client Profile

Marcal Paper Mills, Inc. ('Marcal' or the 'Company') is a branded consumer products company engaged in the manufacture and distribution of tissue, towel, and napkin products to retailers such as grocers, drug stores, office supply and dollar store chains, as well as to wholesale distributors such as food service and janitorial supply companies.

Situation

The Company's operating performance was adversely affected by difficult market conditions, including industry overcapacity, aggressive price cutting, raw material price pressures as well as rising energy costs and operational production issues. As a result, Marcal filed for Chapter 11 bankruptcy protection in November 2006.

Solution

SSG's professionals were retained with the mandate of evaluating strategic alternatives to facilitate either a plan of reorganization or sale of the business. After a comprehensive sale process, which included negotiations and discussions with numerous prospective strategic and financial partners, the Company was sold in an S363 auction to NexBank, SSB. SSG worked extensively with the Company in evaluating and negotiating multiple alternatives, ultimately leading to a successful closing on May 20, 2008.

May 2008