Black Friday the 13th for APPVION

APPVION will still be the new name for APPLETON (Papers) despite the last minute failure of the proposed business combination with Hicks Acquisition Company II (HKAC).  Hicks apparently asked for a waiver to bring significantly less cash to the closing, citing "volatile market conditions."  This after Hicks also proposed to halve warrant holders' rights to purchase future stock (HKACW).  So the shrewd deal is dead.  Let's check how well the first Hicks Acquisition Company business combination with Resolute Energy (REN) is going:  oops, just got downgraded to "sell".  

New Paper Reflects Light Like Real Objects

A collaborative research project between the UCSC Banana Slugs, HP and 3M announced they have developed a conceptual new kind of paper covered with microscopic hills and valleys creating a "specular micro-geometric" surface.  Printing on those tiny shapes could control the way light reflects from different angles, resulting in a printed object that would reflect light similar to the real life object.  Check out their proof of concept video.

There is an "App(vion)" for . . .

. . . eliminating ESOP repayment obligations and deleveraging your balance sheet.  Appleton Papers announces they will "merge" with Hicks Acquisition Company II and create a new entity called APPVION (hint: APPlied innoVatION).  The deal values the new company at $675mm (as of 1Q:2012 Appleton had $505mm net debt).  The company will be listed on the NASDAQ after the merger is completed, presumably in July.
HAC II was founded in October, 2010 by Thomas O. Hicks.  Yes, that Tom Hicks.  In September 2007, Hicks Acquisition Company I was formed and merged with Resolute Energy in 2009.  Click here to see how that merger has worked out (so far, better than his Texas professional sport teams did).

But What Else Can NewPage Study For "US"?

After receiving $30 million in 2008, and another $20 million last year from the U.S. Department of Energy to study the feasibility to produce biodiesel fuel from waste residue at its Wisconsin Rapids mill, NewPage pulls the plug by determining "that the economics did not justify the company's continued participation with the project."  With diesel fuel prices near their 2008 all time highs, one wonders how high the price of diesel fuel would have to be to make the project viable?  Or just maybe NewPage (in Chapter 11) isn't willing to commit to making future mill waste at this location?

Scientists Create "Futuristic" Paper

Researchers at the Italian Institute of Technology reportedly have developed patents for a process that coats individual cellulose fibers with materials that make paper waterproof, or magnetic, or antimicrobial or a combination of features.  "What's cool is that even though the paper has taken on additional properties, in most instances it continues to feel and function like regular old paper."

The Watermill Group Vision

Continuing it strategic vision of recycling recycled paper mills, the Watermill Group acquires bankrupt Manistique Papers (which produces 100% recycled uncoated paper grades) to complement its 2009 acquisition of FutureMark Paper Company (which produces 100% recycled coated paper grades).  Both companies will share a common CEO but will operate separately while achieving economies of scale.  This 2011 article states that their "green" business strategy rewards the company with 2-5% above average industry prices.  No word though on how sister company MultiLayer Coating Technologies, LLC (acquired from Polaroid in 2006) is doing (other than they have some equipment for sale).

Mohawk Reinvents Itself

Fourth generation family owned Mohawk Fine Papers, Inc. announces plans to go forth and streamline offerings and get closer to the consumer; says it will jettison 50% of its SKU's and 75% of the words in its name!

Crank UP The Impression!

Letterpress printing process gains new advocates in our digital age.  Go figure!

PaperlinX Consolidates Canadian Brands

Soon will be using the new moniker Spicers Paper Canada Limited.  First order of  business -- a new logo.
Sure hope all this positively impacts their stock price.

How much time did Verso Paper buy?

The domestic coated paper market is tough enough but when you've got a mountain of debt it can be murderous  (just ask NewPage, with more than 2x the capacity).  Verso (VRS) just bought some breathing room with a private exchange for some debt due in 2014 with 2019 maturities. Click here to read one man's vision why their stock probably won't exist in 2019!  

The Great Paper Airplane Project . . .

got off the ground in Arizona when a 45 foot long, 800 pound paper airplane took flight (with the initial help of a helicopter), reaching a glide speed of 98 mph.

Wonder What They Know?

In the past two weeks, six International Paper insiders sold a total of 123,884 shares (approx. $4.3mm) according to this article.  Currently trading at about $35/share, sure wish I'd bought some IP in 2009 at a low of $4!  Also wondering when the financial impact of being the 10th largest unsecured creditor in the Kodak bankruptcy hits the financial statement (via their xpedx merchant division)?

New Recycling Invention:

English boffins invent the laser "un-printer."  My guess is the 1st adopters will be check forgers.

Reminds me of another paper recycling invention from Japan to re-purpose your boss's memos.  Wonder why we haven't heard any more about it since January 2010?