APG Direct parent company seeks sale out of Chapter 11

American Paper Group

, a manufacturer of church offertory and other types of envelopes which filed for Chapter 11 bankruptcy protection on Nov. 6, is working diligently toward a sale of the company. A transaction could be put in place by as early as Dec. 13, pending court approval. The Youngstown, OH-based company operates a catalog business called APG Direct.

Although the Northern District of Ohio bankruptcy court held a hearing on Dec. 3 to explore the marketer’s cash collateral, the court didn’t demand that the company find a buyer. But a company attorney Matthew Matheney, from the Cleveland-based law firm Frantz Ward, says there are “a number of potential bidders actively working to buy American Paper as a going concern sale. We’re hopeful that a transaction will be well on its way by Dec. 13,” he says.

Competing bidders have until Jan. 6 to make their bids. Another bankruptcy court hearing for the expected sale of the company will take place on Jan. 9.