Appvion to Be Sold

ESOP-owned paper company Appvion, under Chapter 11 bankruptcy protection since October, announced on February 8 that it would sell its assets to a group of investors. According to the Post Crescent, a USA Today newspaper in Wisconsin, an internal letter to Appvion employees noted that the shares in the ESOP would likely not have any value after the asset sale.

The article cites NCEO founder Corey Rosen, who said, "ESOP bankruptcies are actually quite rare. We did a study during the recession and the default on loans from creditors was two per 1,000 per year. ESOP companies go bankrupt much less often than non-ESOP companies. Unfortunately, Appvion is not one of them."