Monday, November 18, 2002
BOARDMAN -- American Paper Group, which filed for bankruptcy protection Nov. 6 and sought a quick sale, is seeking court approval for a buyer.
The company said Saturday it is asking Judge William Bodoh of U.S. Bankruptcy Court in Youngstown to approve a letter of intent with MWM Dexter Inc., based in Aurora, Mo. MWM Dexter calls itself a leading producer of church bulletins and related products.
American Paper expects a sale to be done by Jan. 7.
American Paper is the country's largest maker of church envelopes, with 40 percent of the market and serves 40,000 churches. The company employs 350 hourly and salaried workers at plants on Southern Boulevard and McClurg Road.
Union officials have said they expect the jobs to remain despite the sale.
Added jobs
American Paper recently added 45 jobs to its Boardman plant because it closed a plant in Richmond, Va., to save money and consolidate operations.
The company said it has been improving operations in Boardman, where production is at two million units a day but is expected to reach three million units a day by the end of the year.
Officials have said American Paper is profitable but has too much debt because the company has been sold several times. Officials said they tried to sell the company without going into bankruptcy court, but buyers did not want to assume leases for its two closed plants or assume its debt.