Dunn Paper Works on Restructuring Deal as Debt Maturity Nears

Dunn Paper is working on a restructuring agreement that may give ownership to a group of first-lien lenders, according to people with knowledge of the situation.

The food-packaging, paper and tissue manufacturer, whose profits have been hit by higher pulp prices, has been negotiating with holders of its debt coming due. Dunn’s revolving credit and first-lien term loan mature on Aug. 26, with a second-lien term loan due in August, 2023.

Dunn received forbearance through May 15 after missing interest payments on its term loans due March 31, according to Moody’s Investor Service. Lenders want to complete a consensual deal ...