Court approves FiberMark's retention of former executive to sell three idle plants

By Jeff Pines

Washington, Sept. 14 - The U.S. Bankruptcy Court for the District of Vermont approved FiberMark Inc.'s retention of a former executive who brokered the sale of three idle plants as a professional person.

The order was filed with the court Monday.

FiberMark, a specialty paper and cloth company, hired Bruce Moore, FiberMark's former chief financial officer who had been with the company for 30 years, to market its unused facilities, one in West Springfield, Mass., another in Rochester, Mich., and the third in Johnston, R.I.

Moore's commission under the agreement would range from 5% to 7% of the gross sale value of all cumulative properties. The commission would depend upon the proceeds, with 5% for a minimum of $3 million up to 7% for more than $4 million. The total sale price for the three facilities was $4.6 million.

Under the agreement, Moore cannot receive any commission for the Johnston plant because the Brattleboro, Vt.-based company already had an agreement with commercial real estate broker CB Richard Ellis, so his commission will be less than 7%.

The trustee was concerned that Moore was a professional person under the bankruptcy code, which means the court must approve his being retained by the company.

The order also prevents Moore from filing an administrative claim against FiberMark should the company fail to pay him his commission.

FiberMark filed for bankruptcy on March 30. Its Chapter 11 case number is 04-10463.

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