Amendments allow ESOP to own less than 50% of Paperweight Development Corp

Appleton, Wisconsin, USA, 28 January 2010 -- Appleton Papers Inc. announced today that it has received the requisite consents from the beneficial owners of its 11.25% second lien notes due 2015 to certain amendments to the indenture governing the second lien notes (the indenture). Adoption of the amendments requires the consents of the holders of a majority in aggregate principal amount of the second lien notes.

The amendments will permit the Appleton Papers Retirement Savings and Employee Stock Ownership Plan (the ESOP) to own less than 50% of Paperweight Development Corp. (Appleton’s parent company) without triggering a requirement on the part of Appleton to make an offer to repurchase the second lien notes pursuant to the Indenture. They also will permit a capital contribution or operating lease of the black liquor assets located at Appleton’s facilities at Roaring Spring, Pennsylvania, to a newly-formed joint venture with a third party in exchange for a minority equity interest in such joint venture. 

Appleton expects to immediately enter into a supplemental indenture giving effect to such amendments upon satisfaction of certain customary conditions contained in the Indenture.