Friday, November 18, 2011

Peter Brant's SP Newsprint files bankruptcy (Reuters)

(Reuters) ? SP Newsprint Co, owned by newsprint magnate and art collector Peter Brant and which has called itself the fourth-largest North American newsprint manufacturer, filed for Chapter 11 bankruptcy protection on Tuesday.

The filing by the Greenwich, Connecticut-based company and three affiliates follows a September 7 bankruptcy filing by NewPage Corp, which is North America's largest maker of magazine paper and owed by private equity firm Cerberus Capital Management LP.

SP Newsprint has between $100 million and $500 million of both assets and liabilities, according to its petition filed with the U.S. bankruptcy court in Wilmington, Delaware.

Paper makers have struggled in recent years with rising raw material costs, increased competition from Asia and Europe, and falling demand as more advertisers and readers move online.

SP Newsprint operates mills in Dublin, Georgia, and Newberg, Oregon, with an annual capacity of 910,000 metric tons, and 23 recycling facilities through its SP Recycling Corp unit, according to the companies' respective websites.

The law firm representing SP Newsprint in the bankruptcy did not immediately respond to a request for a comment.

Another of Brant's companies, newsprint manufacturer White Birch Paper Co, filed for bankruptcy protection in Canada in February 2010.

That company's U.S. unit, Bear Island Paper Co, filed for Chapter 11 protection the same month in Richmond, Virginia, and remains in bankruptcy proceedings, court records show.

Brant has been listed as a billionaire on Forbes magazine's annual list of the richest Americans, though he was not on this year's list. His second wife is supermodel Stephanie Seymour.

He has also run Brant Publications Inc, whose magazines include Art in America, The Magazine Antiques, and Interview, which was created by the artist Andy Warhol.

Brant was also the breeder of the horse Thunder Gulch, which won the 1995 Kentucky Derby.

The case is In re: SP Newsprint Holdings LLC, U.S. Bankruptcy Court, District of Delaware, No. 11-13649.

(Reporting by Jonathan Stempel in New York; Editing by Derek Caney and Matthew Lewis)

Source: http://us.rd.yahoo.com/dailynews/rss/enindustry/*http%3A//news.yahoo.com/s/nm/20111115/media_nm/us_media_spnewsprint

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