Royal Paper Enters into Asset Purchase Agreement with Sofidel America 
Corp. 
 
   Files Voluntary Chapter 11 Petitions to Facilitate Sale Process 
 
   Sofidel America Corp. will Serve as "Stalking Horse Bidder" in 
Court-Supervised Sale Process 
 
   Royal Paper Receives Commitment for New Financing to Support Business 
Operations 
 
   PHOENIX, April 08, 2025 (GLOBE NEWSWIRE) -- Royal Paper, LLC. ("Royal" 
or the "Company"), a leading provider of high-quality paper products, 
announced today that the Company has entered into an Asset Purchase 
Agreement ("APA") with Sofidel America Corp. ("Sofidel"), pursuant to 
which Sofidel will acquire substantially all of the Company's assets. 
 
   To facilitate the transaction, Royal has filed for voluntary protection 
under Chapter 11 of the U.S. Bankruptcy Code in the United States 
Bankruptcy Court for the District of Delaware. This action is expected 
to provide for a quick and orderly sale of the Company's assets under 
Section 363 of the Bankruptcy Code, with Sofidel serving as the 
"stalking horse bidder" in a court-supervised auction and sale process. 
 
   The agreement with Sofidel remains subject to Court approval and other 
customary conditions, including the receipt of any required regulatory 
approvals. The Sofidel APA is subject to higher and otherwise better 
offers received in the court-supervised process. 
 
   Royal intends to move through this process while operating in the 
ordinary course -- providing the high-quality products that its 
customers and partners rely on. In connection with the proposed sale 
transaction, Royal has received a commitment for debtor-in-possession 
("DIP") financing from its existing secured lenders to support the 
business through the sale process. The Company intends to pay vendors, 
suppliers, and other trade creditors in full under normal terms for 
goods and services provided during the bankruptcy case. 
 
   "Our team has been working diligently to strengthen our financial 
foundation in the face of difficult macroeconomic circumstances and 
other challenges facing Royal," said Steve Schoembs, Chief Executive of 
Royal. "Entering into an agreement with Sofidel provides stability for 
our business, its customers, and our employees, while we continue to run 
our sale process. I want to thank our incredibly talented employees for 
their continued focus and hard work, and our customers, partners, and 
suppliers for their support." 
 
   Additional information on the Company's Chapter 11 case can be found at 
https://dm.epiq11.com/RoyalPaper or call our dedicated number 
at (888) 874-8095 (for toll-free U.S. and Canada calls) or +1 (503) 
897-9037 (for tolled international calls). 
 
   Royal is advised in this matter by Morris, Nichols, Arsht & Tunnell LLP 
as legal counsel, Novo Advisors as financial advisor, and Livingstone 
Partners as investment banker. 
 
   About Royal Paper 
 
   Founded in 1992 in Phoenix, AZ, Royal is a manufacturer and national 
supplier of high-quality paper products. The Company began as a 
family-owned business that operated a single converting line, supplying 
napkins and bath tissues to local retailers in Phoenix, Arizona. Since 
1992, the Company has continuously evolved its production capacity to 
produce additional products in a broad range of configurations to a 
growing customer base. Today, the Company provides a full range of paper 
products--paper towels, bath tissues, facial tissues and napkins--across 
the value spectrum (from premium to value products), with manufacturing 
across the United States tailored to meet the specifications and 
standards of their customers. 
 

(END) Dow Jones Newswires

April 09, 2025 05:33 ET (09:33 GMT)