Orchids Gets Bankruptcy Plan Extension, OK on Sale Settlement

Orchids Paper Products Co. received court approval for an unsecured creditor repayment deal and an extension on submitting its final restructuring plan, getting closer to completing its Chapter 11 case.

Orchids, which makes napkins and other paper products, plans to sell its main business units to Canadian competitor Cascades for $207 million. U.S. Bankruptcy Judge Mary Walrath approved Sept. 10 an agreement between secured and unsecured creditor groups to set aside $825,000 in proceeds from the sale as part of a recovery pool for general unsecured creditors.

The U.S. Trustee’s office, the Justice Department bankruptcy watchdog that initially opposed the ...