Papermaker acts on Paperlinx debt

One paper manufacturer has already set aside a multimillion-pound provision to cover its likely bad debt with Paperlinx UK.

At the same time, Arctic Paper has moved swiftly to secure alternative supply channels for the ranges previously sold via Paperlinx, which had been the exclusive supplier of G-Print sheets and Amber Graphic for the commercial market.

The company has made a €3.7m (£2.7m) provision, which covers its total outstanding debt with the Paperlinx UK businesses that are now in administration with Deloitte.

Speaking to PrintWeek, Arctic Paper chief executive Wolfgang Lübbert said Paperlinx UK had been its biggest supplier across Paperlinx’s pan-European operations.

He said: “It’s very painful. We have reduced our dealings with Paperlinx all over Europe in recent years and are now checking all the possibilities [regarding Arctic’s exposure to its other European operations]. It is a different situation from country-to-country.

“We shall do our utmost to find solutions for every customer and for ourselves.”

UK managing director Rob Slowe confirmed that Arctic matt and silk sheets, an equivalent to G-Print, were now available via Denmaur Independent Papers for the commercial print market.

G-Print reels for Cutstar and heatset web offset are now being sold by Premier Paper, which was already an existing stockist of Amber Graphic reels.

Arctic matt and silk reels for Cutstar and heatset web offset are available from all merchants.

The new stockist for Amber Graphic sheets is to be confirmed.

Arctic Paper’s existing arrangements for all of its other grades and for specific markets, such as publishing, are unchanged.

Slowe said the firm was also dealing with a small number of accounts directly on an interim basis.

Arctic Paper is headquartered in Poland and has four paper mills on the continent. The group posted sales of PLN3.09bn (£557m) in 2014 when it successfully turned around the previous year’s losses to post an operating profit of PLN116.6m.

The group said the Paperlinx provision would hit its first-quarter results.