Arjowiggins Group’s UK operations – including the historic mills at Stoneywood and Chartham – went into administration seven months ago after the business hit the buffers in the face of spiralling costs for energy and raw materials.
Shortly afterwards merchanting group Antalis, which had been the worldwide partner and distributor for the Creative Papers portfolio, acquired a portfolio of Arjo brands along with stocks of the papers.
The latest filings from administrators Alistair McAlinden and Blair Nimmo at Interpath Advisory, state that a total of £1.675m was brought in from asset sales at AW Branding Ltd, which held the group’s main brands and intellectual property assets.
Its Creative Paper brands and associated stock were sold to Antalis for £1.5m.
The acquired paper and packaging lines included Conqueror, Olin, Keaykolour, Rives and Pop’Set. Antalis subsequently rebranded the range as Creative Power by Antalis, and streamlined the offering.
Arjo’s Smart Paper brands were sold to Fedrigoni for £99,994 in conjunction with the sale of the shareholding in Arjowiggins Paper’s Spanish subsidiary. Fedrigoni acquired the Guarro Casas mill six months ago. It makes speciality papers for premium packaging.
The third deal for the Arjo brands and IP involved Sylvicta translucent paper and its associated brands. This was sold for £75,001 “to a third party in conjunction with the sale of the Chinese subsidiaries [owned by Arjowiggins Translucent Papers Ltd, also in administration].”
Fedrigoni made a loan to the acquisition vehicle set up by two former Arjowiggins executives to acquire Quzhou mill in China, and the Italian papermaker has an option to ultimately take over the business as part of the deal.
The complex administration involves ten separate Arjowiggins companies. Arjowiggins Group Ltd had intercompany debts of £33.4m but is “highly unlikely” to receive any recoveries.
Secured creditors were owed £32.1m and had cross-corporate guarantees, but are only likely to receive “partial repayment” according to Interpath.
The senior secured creditor was Shawbrook Bank, owed £9.6m, with Hilco Capital owed £6.5m in mezzanine debt, and Scottish Enterprise a junior secured lender owed £16m.
Shawbrook received a fixed charge distribution of £1.35m following the disposal of the AW Branding brands and IP.
