Summary Judgment-Loan Repayment-Breach of Contract

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WI Court of Appeals – District III

Case Name: Oconto Falls Tissue, Inc. v. ST Paper, LLC

Case No.: 2022AP000729

Officials: Stark, P.J., Hruz and Gill, JJ.

Focus: Summary Judgment-Loan Repayment-Breach of Contract

On April 16, 2007, ST Paper, LLC purchased the assets of a paper mill from Oconto Falls Tissue, Inc. (“OFTI”) and other companies affiliated with OFTI’s then-president for approximately $86,400,000. To finance the purchase, ST Paper obtained a $70,000,000 loan from Goldman Sachs Credit Partners L.P. ST Paper also issued

four subordinated promissory notes to OFTI (“Seller Notes”), promising to pay a total of nearly $30,600,000. Pursuant to a subordination agreement, the Seller Notes and the indebtedness therein were subordinated to the “Senior Indebtedness” (in essence, the Goldman Sachs loan), thereby requiring

full payment of that indebtedness before any payments could be made on the Seller Notes.OFTI appeals an order granting summary judgment in favor of ST Paper, LLC, dismissing OFTI’s claims against ST Paper for failing to repay several loans. OFTI argues that summary judgment should not have been granted because there are genuine issues of material fact as to whether OFTI met the requirements for enforcing a lost, destroyed or stolen instrument under WIS. STAT. § 403.309 (2021-22).

Affirmed.

Decided 08/29/23

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