Appvion, Inc recently filed for Chapter 11 in hopes of deleveraging its balance sheet. One interesting wrinkle in this restructuring is that since 2001 Appvion has been 100% owned by its employees through an employee stock-ownership plan (ESOP). What treatment might the company propose for ESOP participants in a bankruptcy restructuring? How might the fact that the company is 100% employee-owned affect restructuring dynamics? In this Special Report, the Debtwire legal analyst team tackles these questions and provides a brief overview of ESOPs.
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Paul Gunther is a former practicing restructuring and litigation attorney. Prior to joining Debtwire as a Legal Analyst, Paul practiced in the New York offices of Dentons US LLP, Salans LLP and Mayer Brown LLP. He has represented various constituencies in high-profile restructurings.
Any opinion, analysis or information provided in this article is not intended, nor should be construed, as legal advice, including, but not limited to, investment advice as defined by the Investment Company Act of 1940. Debtwire does not provide any legal advice and subscribers should consult with their own legal counsel for matters requiring legal advice.