Winner of White Birch Paper Company to be determined by a judge

The winner of the White Birch Paper Company auction is not as clear as originally thought.

Two groups of lenders participated in the auction last week. The two groups are:

• "Black Diamond" - comprised of Black Diamond Capital Management LLC, Credit Suisse Group AG, and Caspian Capital Advisors LLC


• "Sixth Avenue" - comprised of BlueMountain Capital Management, Lombard General Insurance Co. of Canada, Macquarie Americas Corp., and Wexford Capital LP

Both companies bid for the company in the auction. Sixth Ave. Investment Co. LLC argues that their bid is actually better than Black Diamond's because their offer allocates money for the company's assets, cash to pay administrative costs, with money left to pay the unsecured creditors.

Black Diamond's bid would give general unsecured creditors less than one-half of one percent.

A judge will determine the winner of the auction on September 30.

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