Livingstone Completes Sale of Mohawk Fine Paper to Fedrigoni Group

Livingstone is pleased to announce the successful sale transaction for Mohawk Fine Paper, Inc. (“Mohawk” or the “Company”). Verona, Italy-based Fedrigoni Group (“Fedrigoni”) acquired certain assets of the Company, including those related to the Company’s primary manufacturing facilities in central New York.  The transaction provides Fedrigoni with a meaningful opportunity to enhance its premium product offering in the United States.

Founded in 1931, Mohawk is an innovative manufacturer and supplier of specialty paper, envelope, packaging, and stationery products. The Company’s specialty papers are used by designers, brands, and printers who require high quality products delivered to exacting standards. The Company has robust manufacturing capabilities in the northeastern United States and maintains a broad customer reach through its distribution centers in the United States and partner relationships in Canada and Europe.

Fedrigoni Group is a leading manufacturer of specialty papers, labels, and self-adhesive materials. Fedrigoni employs over 5,000 individuals in 28 countries and sells and distributes over 25,000 products across 132 countries.

Following a period of financial stress for Mohawk, the Company and Fedrigoni began discussions regarding a potential acquisition. The acquisition was consummated through a foreclosure process pursuant to Article 9 of Uniform Commercial Code (UCC) and resulted in a reduction in indebtedness and preservation of many jobs and customer relationships.

James Katchadurian, Chief Restructuring Officer of Mohawk and partner with CR3 Partners, stated, “This transaction places Mohawk on a firmer financial footing as part of the Fedrigoni Group, while also preserving the historic Mohawk brand and the manufacturing capabilities and jobs in the Company’s central New York facilities.”

Joe Greenwood, Partner at Livingstone, added, “This was a challenging transaction and we are pleased with the positive result for our client and the Company’s stakeholders. This transaction demonstrates Livingstone’s global reach and expertise in structured transactions in distressed situations.”

Other professional firms involved in the transaction include:

• CR3 Partners – Chief Restructuring Officer and financial advisor to Mohawk
• Wollmuth Maher & Deutsch LLP – counsel to Mohawk
• Goldberg Kohn – counsel to secured lender
• Novo Advisors – financial advisor to secured lender
• Latham & Watkins – counsel to Fedrigoni

Livingstone’s Special Situations practice has extensive experience advising middle-market companies through M&A, financing, and balance sheet restructuring transactions during periods of underperformance, distress, and insolvency.