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Orchids Paper announces amended agreement with creditors

Orchids Paper has reached an agreement with its creditors, amending its credit agreement.

The news comes in light of the company’s ongoing efforts with interested parties in terms of its sale.

The company has previously disclosed its initiative to refinance its existing debt obligations, as well as to explore alternative financing and capital-raising activities in order to address its ongoing liquidity needs.

Jeff Schoen, president and chief executive, said: “Our lenders continue to support and maintain access to the liquidity needed to operate our business.

“On 20 November, we executed modifications to our credit facilities to increase the amount available under our revolving line of credit by $5.9m and to defer future principal and interest payments to 31 December 2018.

“In addition, the amended agreement extends the milestone dates to execute a transaction to 31 December 2018. At the end of the third quarter, the company had $5.1m of cash on hand.”

Additionally, Orchids has also won a significant bid with a new customer to supply 100% recycled ultra-premium quality tissue.

Schoen added: “We recently won a significant bid from a national supercentre retailer as the sole supplier of 100% recycled ultra-premium kitchen towel and bath tissue supporting the sustainable product channel, which will be serviced out of our Barnwell facility using QRT paper.

“We expect this business to begin shipping in March 2019 and to make a significant contribution to the overall profitability of the company.”

Orchids Paper Products Company is a national supplier of high quality consumer tissue products primarily serving the At-Home private label consumer market.

It produces a full line of tissue products including paper towels, bathroom tissue and paper napkins to serve the ultra-premium quality market segments from its operations in northeast Oklahoma, Barnwell, South Carolina and Mexicali, Mexico.

The company provides these products primarily to retail chains throughout the United States.

Orchids was unavailable for further comment at this time.

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