BOARDMAN American Paper names lead bidder for buyout

The company CEO says potential buyers intend to keep plants operating.
BOARDMAN -- American Paper Group has selected an Indiana publisher as the lead bidder in the sale of the company.
Our Sunday Visitor, which publishes a Catholic newspaper and prints church envelopes in Indiana, was selected Thursday over MWM Dexter, which prints church bulletins in Missouri.
Both companies have said they intend to operate American Paper's envelope-making plants on Southern Boulevard and McClurg Road, said Tom Pietrocini, American Paper chairman and chief executive.
He expects employment after the sale to be about 300. The plants employ 330 after the recent layoff of 35 people.
Pietrocini said he expects MWM Dexter and perhaps other companies to try to outbid Our Sunday Visitor at an auction Jan. 13. By gaining lead bidder status, the Indiana company is entitled to a $350,000 break-up fee if it is outbid.
Financing is in place
Pietrocini said Our Sunday Visitor's bid was accepted because it had no financing contingencies. MWM Dexter's bid was dependent on it arranging financing by Dec. 31.
Our Sunday Visitor's bid is $17.4 million, including $13.75 million for secured creditors and $500,000 for unsecured creditors.
Its agreement with American Paper says it will try to negotiate a contract with American Paper's union employees before closing the sale Jan. 15. If negotiations are unsuccessful, it will give those workers the same terms of employment as it gives non-union workers.
Pietrocini said American Paper's business complements that of Our Sunday Visitor, which is the largest envelope-maker for Catholic churches. American Paper is the largest envelope-maker in the country, but much of its business is with Protestant churches. It also prints commercial envelopes.