BALA CYNWYD, Pennsylvania (News release) -- On December 20, 2017, PaperWorks Industries, Inc. and certain of its affiliates (collectively, the "Company") and five (5) holders of the Company's 9.500% Senior Secured Notes due 2019 (the "Notes"), holding approximately 87% of the outstanding Notes (the "Ad Hoc Group"), entered into a restructuring support agreement (the "RSA") regarding a comprehensive financial restructuring of the Company's debt and equity structure. Among other things, the proposed restructuring will reduce the Company's long term debt by approximately $275 million, which represents approximately 70% of the Company's funded indebtedness, through a repayment of the Company's existing ABL credit facility and an exchange of the Notes for new debt and new common equity in the reorganized Company. Under the RSA, the Company's pro forma capital structure will consist of a $115 million post-restructuring financing facility, inclusive of $70 million of new capital back stopped by the Ad Hoc Group.

"The planned restructuring will establish a strong and sustainable debt and equity structure that will enable us to maximize value for all our stakeholders," said C. Anderson "Andy" Bolton, Chief Executive Officer of the Company. "This restructuring will ensure continuity of supply to the Company's valued customers, protects our vendors and workforce and provides enhanced financial flexibility moving forward. I would especially like to thank our customers, vendors and employees for their patience and support as we move through this process. We are excited to be partnering with our noteholders in the ownership of our business."

As the proposed restructuring is solely focused on the Company's Notes and ABL credit facility, it will not impact the Company's customers, employees, vendors, nor other secured and unsecured creditors. The Company will continue to honor its obligations to such parties in the ordinary course of business with no disruptions.

The Company expects to conclude the restructuring process by the end of March 2018.

The Company is represented by Kirkland & Ellis LLP as legal counsel, Houlihan Lokey Capital, Inc. as investment banker, and Zolfo Cooper, LLC as financial advisor. The ad hoc group of noteholders is represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal counsel and PJT Partners, Inc. as investment banker.

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EMPLOYMENT OPPORTUNITY: We are a large automation company that has a line of consistency transmitters, sample valves and sheet break detectors that are marketed through a rep. network. We are seeking someone with a strong background in consistency control to facilitate start-ups, provide troubleshooting and technical advice. The individual should have experience in all major types of consistency measurement technologies (blade, rotary, microwave and optical). Knowledge of sheet break detection technology is desirable as well. Willingness to travel to paper production facilities across the US is a must.

Travel & Living Expenses to be reimbursed along with an agreed upon daily per diem rate.

For more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412

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