Cascades Purchases U.S. Assets

Cascades Tissue Group Inc., the tissue paper subsidiary of Kingsey Falls, Quebec-based Cascades Inc., completed its asset purchase of 33 tissue converting lines, a tissue mill and related machines for approximately $92.4 million. These assets, located in New York, Oregon and California, were previously owned and operated by affiliates of American Tissue Inc., which is currently under reorganization proceedings in the United States Bankruptcy Court, District of Delaware. Approximately $38.5 million of these assets were purchased from lessors and secured lenders of American Tissue, and approximately $53.9 million of the assets were purchased directly from American Tissue. The latter part of the transaction was approved by the court, and the deal closed on June 14, 2002.
The Cascades in-house legal team was led by Robert Hall, Diane Lemelin and Michèle Beauchamp. Torys LLP acted as external counsel, with a team that included Sandy Feldman (corporate), Mirek Fajt and Matt Nichols (real estate), Bill Gray and Jason Adams (bankruptcy), Ed Henderson and Ian Goldrich (litigation), Darien Leung and Craig Pell (corporate/bankruptcy) and Paula Brown (real estate).
The indenture trustee for American Tissue’s bondholders was represented by Andrew Rosenberg of Paul, Weiss, Rifkind, Wharton & Garrison. American Tissue was also represented by James Stang (bankruptcy) of Pachulski, Stang, Ziehl, Young & Jones P.C. in Los Angeles, and Nicholas Kaiser (real estate) of Mandel Resnik & Kaiser P.C. in New York.