Court clears way for American Greetings acquisition

By Roger Mezger

February 19, 2009, 5:48PM

Recycled Paper Greetings Inc., the Chicago-based greeting card maker being acquired by American Greetings Corp., has received court approval of its plans to reorganize itself under Chapter 11 and sell itselfto its larger rival, according to U.S. Bankruptcy Court filings. The transaction is valued at $151.1 million.

Recycled Paper Greetings filed for bankruptcy on Jan. 2. The company told the District of Delaware Bankruptcy Court in Wilmington that it had been in default on its secured debt since April, that its reorganization plan was unanimously accepted by lenders and that unsecured creditors would be fully repaid.

Recycled Paper Greetings, owned by the private equity Monitor Clipper Partners, is the nation's third-largest greeting card company after privately held Hallmark Cards Inc. of Kansas City, Mo., and Brooklyn-based American Greetings.

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