Exhibit 99.1

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE


In re: Appvion, Inc. et al.,		Case No. 17-12082 (KJC)
Debtors		Reporting Period: 12/31/17 - 1/28/18

MONTHLY OPERATING REPORT

Submit copy of report to any official committee appointed in the case.


REQUIRED DOCUMENTS	Form No.	Document Attached	Explanation Attached	Affidavit/ Supplement Attached
Schedule of Cash Receipts and Disbursements	MOR - 1	X
Bank Reconciliation (or copies of debtor’s bank reconciliations)	MOR -1A	X
Schedule of Professional Fees Paid	MOR - 1B	X
Copies of bank statements			X
Cash disbursements journals			X
Statement of Operations	MOR - 2	X
Balance Sheet	MOR - 3	X
Status of Postpetition Taxes			X
Copies of IRS Form 6123 or payment receipt			X
Copies of tax returns filed during reporting period			X
Summary of Unpaid Postpetition Debts	MOR - 4	X	X
Listing of aged accounts payable	MOR - 4	X	X
Accounts Receivable Reconciliation and Aging	MOR - 5	X
Debtor Questionnaire	MOR -5A	X

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.


				2/23/2018
Signature of Authorized Individual*				Date


Alan D. Holtz				Chief Restructuring Officer
Printed Name of Authorized Individual				Title of Authorized Individual

*	Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

MOR

(04/07)


In re: Appvion, Inc. et al.,		Case No. 17-12082 (KJC)
Debtors		Reporting Period: 12/31/17 - 1/28/18

Notes to the Monthly Operating Report

The Monthly Operating Report includes the activity for the following debtors:


Debtor	Case Number
Appvion, Inc.		17 - 12082
Paperweight Development Corp		17 - 12083
PDC Capital Corp		17 - 12084
Accounts Receivables Funding I LLC		17 - 12085
APVN Holdings LLC		17 - 12086

General Notes:

The financial statements contained in this Monthly Operating Report (“MOR”) include, for each of the Debtors, the balance sheet as of January 28, 2018 and the statement of operations for the period from December 31, 2017 through January 28, 2018. The MOR has been prepared to fulfill the monthly reporting requirements applicable in these chapter 11 cases as set forth by the Office of the United States Trustee. The information contained herein is unaudited, is limited in scope, and is subject to change. Certain information and notes normally included in financial statements prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) have been omitted.

Notes to MOR 1:

Receipts

Receipts for Appvion, Inc. include collections from the sale of paper products as well as intercompany transfers from Accounts Receivable Funding I LLC (“ARF”), a Debtor, and Appvion Canada, Inc., a non-Debtor. Amounts transferred from Appvion Canada, Inc. reflect CAD-denominated collections less disbursements related to Appvion Canada, Inc. operations.

Disbursements

Categories of payments made during the period include both those which have cleared the bank and those which have not. For financial reporting purposes, outstanding checks are not deemed to be a disbursement, and thus the amount of such has been added back to the categorized amounts. This add-back is reflected in a single line item.

The “Unclassified” line item includes spend for vendors not specifically broken out in other categories.

Notes to MOR 1A:

The Debtors prepare bank reconciliations for all open and active bank accounts on a monthly basis. Check registers and/or disbursement journals are maintained for each disbursement account within the Debtors’ financial accounting systems. Bank statements and reconciliations for all open and active bank accounts are retained by the Debtors and are available upon request by the

United States Trustee’s office. See Notes to MOR 1 above regarding outstanding checks.

This schedule excludes the following restricted cash accounts:

Fifth Third Bank Utility account xxxxxx2899 (balance at 1/28/18 of $800k)

Fifth Third Cash collateral for existing L/Cs xxxxxx2865 (balance at 1/28/18 of $4,775k)

US Bank cash P-Card account xxxxx1284 (balance at 1/28/18 of $500k)

Notes to MOR 2:

Accrual Basis

The Statement of Operations is prepared on an accrual basis. The accrual basis of accounting recognizes revenue when it is realized and expenses when they are incurred, regardless of when cash is actually received or paid.

MOR

(04/07)


In re: Appvion, Inc. et al.,		Case No. 17-12082 (KJC)
Debtors		Reporting Period: 12/31/17 - 1/28/18

Notes to the Monthly Operating Report

Notes to MOR 3:

The balance sheet is presented without intercompany eliminations. Receivable and payable balances related to affiliates include both Debtor and non-Debtor entities.

Prepetition and Postpetition Liabilities

Current liabilities at Appvion, Inc. reflect postpetition liabilities. The Debtors’ current estimate of prepetition liabilities of Appvion, Inc. is included in the “Liabilities Subject to Compromise.” These estimates for Appvion, Inc., as well as liabilities of other Debtors, remain subject to analysis for further reclassification as prepetition or postpetition.

Restricted Cash

Refer above to Notes to MOR 1A for detail of this balance

Notes to MOR 4:

Postpetition Taxes

The Debtors are current with respect to payment of all undisputed postpetition taxes.

Tax Returns

No tax returns, including IRS Form 6123, were filed during the reporting period.

Accounts Payable

The postpetition balances include:

Open and outstanding invoices that have been entered into the Debtors’ accounts payable system, and

Estimates for amounts due but not yet invoiced

All post-petition obligations are being paid when due. Amounts included in 0-30 DPD category represent payments awaiting matching against receiving documentation and/or reconciliation with cash-in-advance arrangements.

MOR

(04/07)


In re: Appvion, Inc. et al.,		Case No. 17-12082 (KJC)
Debtors		Reporting Period: 12/31/17 - 1/28/18

MOR - 1

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

For the Period December 31, 2017 through January 28, 2018

(Unaudited)


In Thousands USD	Appvion, Inc.			Paperweight Development Corp		PDC Capital Corp		Accounts Receivables Funding I LLC			APVN Holdings LLC
Operating Receipts:
Collections	$	12,901		$	—	$	—	$	37,854		$	—
Intercompany Transfer (Debtor)		34,592			—		—		—			—
Intercompany Transfer (non-Debtor)		1,359			—		—		—			—
Less Deposits in Transit		—			—		—		—			—

Total Operating Receipts	$	48,853		$	—	$	—	$	37,854		$	—
Operating Disbursements:
Payroll & Taxes	$	(8,632	)	$	—	$	—	$	—		$	—
Pension		—			—		—		—			—
Materials		(27,126	)		—		—		—			—
Repairs & Maintenance		(533	)		—		—		—			—
Utilities		(2,586	)		—		—		—			—
Freight		(3,192	)						—
Insurance		(1,845	)		—		—		—			—
IT & Professional Services		(497	)		—		—		—			—
Customer Rebates		(3,902	)		—		—		—			—
Unclassified		(3,891	)		—		—		—			—
Intercompany Transfer (Debtor)		—			—		—		(34,592	)		—
Intercompany Transfer (non-Debtor)		—			—		—		(2,462	)		—
Add outstanding checks and payments in transit		141			—		—		—			—

Total OperatingDisbursements	$	(52,064	)	$	—	$	—	$	(37,054	)	$	—
Non-Operating Cash Flows:
Restructuring Professional Fees	$	(1,248	)	$	—	$	—	$	—		$	—
KERP / KEIP		—			—		—		—			—
CapEx		(423	)		—		—		—			—
Cash Collateral and L/Cs		—			—		—		—			—
Interest / Fees		(1,488	)		—		—		—			—
A/R Securitization Payoff		—			—		—		—			—
Other		—			—		—		—			—

Total Non-Operating Cash Flows	$	(3,159	)	$	—	$	—	$	—		$	—
Total Disbursements	$	(55,223	)	$	—	$	—	$	(37,054	)	$	—
*Net Cash Flow*	$	*(6,370*	)	$	—	$	—	$	*800*		$	—
Beginning Cash Balance	$	10,419		$	—	$	—	$	746		$	—
Net Cash Flow		(6,370	)		—		—		800			—
Drawdown/Paydown (+/-)		6,000			—		—		—			—

Ending Cash Balance	$	10,049		$	—	$	—	$	1,546		$	—

MOR

(04/07)


In re: Appvion, Inc. et al.,		Case No. 17-12082 (KJC)
Debtors		Reporting Period: 12/31/17 - 1/28/18

MOR - 1A

BANK RECONCILIATIONS

As of January 28, 2018

Bank Account Reconciliations and Cash Disbursements

The Debtors affirm that bank reconciliations are prepared for all open and active bank accounts on a monthly basis. The Debtors affirm that within its financial accounting systems, check registers and/or disbursement journals are maintained for each disbursement account.

Bank Statements

The Debtors affirm that bank statements for all open and active bank accounts are retained by the Debtors. The Debtors affirm that no bank accounts were closed during the current reporting period.

In Thousands USD


Debtor	Bank		Account No.		Cash (Book Balance)		Outstanding Checks		Outstanding Deposits		Other			Cash (Bank Balance)
Appvion, Inc.		Fifth Third Bank		xxxxxx2579	$	9,207	$	0	$	0	$	0		$	9,207
Appvion, Inc.		Fifth Third Bank		xxxxxx1944		0		0		0		0			0
Appvion, Inc.		Fifth Third Bank		xxxxxx7683		46		0		0		(0	)		46
Appvion, Inc.		Fifth Third Bank		xxxxxx1886		0		0		0		0			0
Appvion, Inc.		Fifth Third Bank		xxxxxx1829		0		0		0		0			0
Appvion, Inc.		Citibank London		xxxx4967		548		0		0		(3	)		545
Appvion, Inc.		Citibank London		xxxx1378		185		0		0		(0	)		185
Appvion, Inc.		BMO Bank		xxx431		63		0		0		0			63

Total					$	10,049	$	0	$	0	($	3	)	$	10,046
Accounts Receivables Funding I LLC		Royal Bank of Canada		xxx8812	$	434	$	0	$	0	$	0		$	434
Accounts Receivables Funding I LLC		Royal Bank of Canada		xxx4107		96		0		0		0			96
Accounts Receivables Funding I LLC		Fifth Third Bank		xxxxxx8457		1,016		0		0		0			1,016
Accounts Receivables Funding I LLC		Fifth Third Bank		xxxxxx8465		0		0		0		0			0

Total					$	1,546	$	0	$	0	$	0		$	1,546

MOR

(04/07)


In re: Appvion, Inc. et al.,		Case No. 17-12082 (KJC)
Debtors		Reporting Period: 12/31/17 - 1/28/18

MOR - 1B

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID

For the Period December 31, 2017 through January 28, 2018

Amount

Check

Amount Paid

Payee

Period Covered

Approved

Payor

Number

Date

Fees

Expenses

AP SERVICES INC

Dec 2017

308,020

Appvion, Inc.

ACH

1/16/2018

277,292

30,728

PJT PARTNERS LP

Jan 2018

150,904

Appvion, Inc.

ACH

1/17/2018

150,000

904

LOWENSTEIN SANDLER LLP

Nov 2017

105,921

Appvion, Inc.

ACH

1/18/2018

105,211

709

O’MELVENY & MYERS LLP

Dec 2017

103,779

Appvion, Inc.

ACH

1/18/2018

102,542

1,237

US BANK (1)

Thru Oct 2017

117,133

Appvion, Inc.

3002787

1/18/2018

115,391

1,742

HOULIHAN LOKEY CAPITAL INC

Dec ‘17 + Jan ‘18

332,645

Appvion, Inc.

ACH

1/22/2018

300,000

32,645

PRIME CLERK LLC

Dec 2017

84,967

Appvion, Inc.

ACH

1/24/2018

38,262

46,705

US TRUSTEE

Q4 2017

44,300

Appvion, Inc.

Multiple

1/24/2018

44,300

Total

1,247,670

1 - Includes fees for US Bank counsel (Foley & Lardner LLP) paid directly to US Bank

MOR

(04/07)


In re: Appvion, Inc. et al.,		Case No. 17-12082 (KJC)
Debtors		Reporting Period: 12/31/17 - 1/28/18

MOR - 2

STATEMENTS OF OPERATIONS

For the Period December 31, 2017 through January 28, 2018


In Thousands USD	Appvion, Inc.			Paperweight Development Corp			PDC Capital Corp		Accounts Receivables Funding I LLC			APVN Holdings LLC
Net sales	$	49,925		$	—		$	—	$	—		$	—
Cost of sales		45,869			—			—		—			—

Gross profit		4,056			—			—		—			—
Selling, general, and administrative expenses		7,041			—			—		—			—

Operating income (loss)	$	(2,985	)	$	—		$	—	$	—		$	—

Other expense (income)
Interest expense, net	$	2,685		$	111		$	—	$	—		$	—
Reorganization items, net		2,610			—			—		—			—
Other Pension Expense		—			—			—		—			—
Foreign exchainge (gain) loss		(196	)		—			—		(7	)		—
Other expense (income)		34			—			—		—			—

Total other expense (income)	$	5,133		$	111		$	—	$	(7	)	$	—

Income (loss) before income taxes	$	(8,118	)	$	(111	)	$	—	$	7		$	—
Provision for income taxes		—			—			—		—			—

Net income (loss)	$	(8,118	)	$	(111	)	$	—	$	7		$	—

MOR

(04/07)


In re: Appvion, Inc. et al.,		Case No. 17-12082 (KJC)
Debtors		Reporting Period: 12/31/17 - 1/28/18

MOR - 3

BALANCE SHEETS

As of January 28, 2018


In Thousands USD	Appvion, Inc.			Paperweight Development Corp			PDC Capital Corp		Accounts Receivables Funding I LLC			APVN Holdings LLC
ASSETS
CURRENT ASSETS
Cash	$	10,049		$	—		$	—	$	1,546		$	—
Restricted Cash		6,075			—			—		—			—
Accounts receivable		59,711			—			—		—			—
Receivables—affiliated		35,360			—			—		—			—
Inventory		92,681			—			—		—			—
Other current assets		21,183			—			—		—			—

Total current assets	$	225,059		$	—		$	—	$	1,546		$	—
Property, plant, and equipment, net	$	190,959		$	—		$	—	$	—		$	—
Intangible Assets		34,417			(2,181	)		—		—			—
Other Assets		5,072			(351,559	)		12		—			—

Total assets	$	455,507		$	(353,740	)	$	12	$	1,546		$	—

LIABILITIES AND STOCKHOLDER’S EQUITY
CURRENT LIABILITIES
Current portion of long-term debt	$	308,185		$	—		$	—	$	—		$	—
Accounts payable		32,693			—			—		—			—
Payable to affiliated		—			31,057			—		4,519			—
Accrued interest		2,352			—			—		—			—
Other accrued liabilities		24,264			—			—		—			—

Total current liabilities	$	367,494		$	31,057		$	—	$	4,519		$	—
LONG-TERM LIABILITIES
Long-term debt, net	$	—		$	—		$	—	$	—		$	—
Postretirement benefits other than pension		—			—			—		—			—
Accrued pension		—			—			—		—			—
Liabilities subject to compromise		433,507			—			—		—			—
Other long-term liabilities		50			—			—		—			—

Total liabilities	$	801,051		$	31,057		$	—	$	4,519		$	—
STOCKHOLDER’S EQUITY
Common Stock, $.01 par value, 30,000,000 shares authorized; 5,823,112 shares issued and outstanding	$	10,500		$	91,760		$	—	$	—		$	—
Paid in Capital		324,078			—			12		—			—
Accumulated deficit		(995,811	)		(476,557	)		—		(2,973	)		—
Purch Price Adj—Affiliated		299,227			—			—		—			—
Accumulated other comprehensive income		16,462			—			—		—			—

Total stockholder’s equity		(345,544	)		(384,797	)		12		(2,973	)		—

Total liabilities and stockholder’s equity	$	455,507		$	(353,740	)	$	12	$	1,546		$	—

MOR

(04/07)


In re: Appvion, Inc. et al.,		Case No. 17-12082 (KJC)
Debtors		Reporting Period: 12/31/17 - 1/28/18

MOR - 4

SUMMARY OF UNPAID POSTPETITION DEBTS

As of January 28, 2018


In Thousands USD	Number of Days Past Due
In Thousands USD	Current		0-30		31-60		61-90		Over 90		Total
Appvion, Inc.
Total	$	31,574	$	1,119	$	0	$	0	$	0	$	32,693

MOR

(04/07)


In re: Appvion, Inc. et al.,		Case No. 17-12082 (KJC)
Debtors		Reporting Period: 12/31/17 - 1/28/18

MOR - 5

ACCOUNTS RECEIVABLE AGING

As of January 28, 2018


In Thousands USD	Days Aged
In Thousands USD	Current		0-30		31-60		61-90		Over 90		Total
Appvion, Inc.
Trade	$	52,733	$	3,472	$	136	$	106	$	429	$	56,877
Other		3,411		0		0		0		0		3,411
Reserve		0		0		0		0		0		(576	)

Total	$	56,144	$	3,472	$	136	$	106	$	429	$	59,711

MOR

(04/07)


In re: Appvion, Inc. et al.,		Case No. 17-12082 (KJC)
Debtors		Reporting Period: 12/31/17 - 1/28/18

MOR - 5A

DEBTOR QUESTIONNAIRE


Must be completed each month		Yes	No
1.	Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below.		X
2.	Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below.		X
3.	Have all postpetition tax returns been timely filed? If no, provide an explanation below.	X
4.	Are workers compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below.	X
5.	Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.		X

MOR

(04/07)

PAPERWEIGHT DEVELOPMENT CORP 8-K