APPLETON, Wisconsin (From news reports) -- Appvion Inc. announced late Thursday that it has filed a motion in the U.S. bankruptcy court for the sale of its assets to a group of its lenders.

The proposed purchase agreement, which is subject to higher or better offers, provides a total consideration of $325 million, plus the assumption of substantial liabilities, according to the company.

The group of lenders was not immediately identified.

"After evaluating options to address our capital structure and conducting extensive negotiations with our lenders, we determined that a sale would be the best path forward for Appvion," company CEO Kevin Gilligan said in a statement.

"We expect that the sale process will be seamless for our stakeholders and will not disrupt our operations. This process will bring a timely and efficient conclusion to our restructuring and ensure that our company emerges as a healthier, financially stable business poised to compete long term in the specialty paper market and further invest in the innovation that has made Appvion a market leader."

Appvion intends to implement bid procedures to allow other qualified bidders the opportunity to submit competing bids through a court-supervised sale process.

The bankruptcy court is scheduled to consider the proposed bid procedures on March 1.

Appvion has requested authorization to proceed with an auction on April 23, provided it receives higher qualified bids by April 19.

The company then would select the best bidder for the ongoing business at the conclusion of the auction and seek approval of the sale to the group of lenders, or the successful bidder, at a hearing shortly thereafter.

Gilligan said launching the sale process with an offer from its lenders is the best option for Appvion. He said the transaction "would result in a substantially deleveraged balance sheet" for the company and allow it to continue to execute its business strategy.

"We are confident that Appvion would be an even stronger partner to all of our stakeholders in the years to come as a result of this transaction," Gilligan said.

Appvion filed for bankruptcy in October. The company produces thermal, carbonless, security, inkjet, digital specialty and colored papers. It is headquartered in Appleton and employs about 1,300 people.

The company operates coating and converting plants in Appleton and in West Carrollton, Ohio, and a pulp and paper mill in Roaring Spring, Pennsylvania.

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