By: E&P Staff
White Birch Paper Co. and its subsidiaries, together North America’s second-largest newsprint producer, were bought by BD White Birch Investment at the bankrupt company’s Sept. 21 auction.
The price was not disclosed, although BD White Birch already had offered $90 million.
Funds managed by Black Diamond Capital Management LLC and its affiliates are the majority owners of BD White Birch, with Caspian Capital Advisors LLC also participating as equity owners.
Based in Lake Forest, Ill., and Greenwich, Conn. (also headquarters of the White Birch majority shareholder Brant-Allen Industries), Black Diamond Capital Management identifies itself as an “alternative asset-management firm with over $5 billion in assets under management across complementary control distressed/private equity, hedge fund and CLO vehicles.”
White Birch Paper operates the Bear Island mill, in Ashland, Va., and, in Quebec, F.F. Soucy (Rivière-du-Loup), Papier Masson (Gatineau), and Stadacona (Québec City).
Operations had continued during the sale process, and all bids were for the operations as a going concern.
Court approval of the winning bid will be sought in Canada on Sept. 24 and in the United States on Sept. 30. The sale is expected to be completed in late November.