|
Quotes & Info
|
| SWM > SEC Filings for SWM > Form 8-K/A on 28-Jul-2009 | All Recent SEC Filings |
28-Jul-2009
Costs Associated with Exit or Disposal Activities
On April 20, 2009, Schweitzer-Mauduit International Inc. (the "Company") filed a Current Report on Form 8-K announcing a plan to divest the finished tipping paper production facility in Malaucène, France. At that time, we indicated the Company's initial estimate of the anticipated costs associated with closing the mill and reducing employment by 211 people would be approximately $22 million pre-tax, of which $20 million was expected for cash severance and $2 million for other non-cash charges.
On July 22, 2009, the Company concluded the statutory consultation process with the Work's Council who expressed a negative opinion on the Company's proposal. Despite this negative opinion, the Company has decided to implement its last and final proposal. The Company now expects to incur approximately $25 million pre-tax in restructuring expenses related to this action. This total consists of $24 million in cash severances, net of reversals of certain employee-related liabilities which are expected to be eliminated as a result of the mill shutdown and employee terminations, and approximately $1 million for other non-cash charges.
Efforts to sell the mill are ongoing but have not to date resulted in a serious offer.
|
|