Exhibit 99.1

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE


In re: Appvion, Inc. et al.,		Case No. 17-12082 (KJC)
Debtors		Reporting Period: 1/29/18 - 2/25/18

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.

*	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: 1/29/18 - 2/25/18

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 February 25, 2018 and the statement of operations for the period from January 29, 2018 through February 25, 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 2/25/18 of $476k)

Fifth Third Cash collateral for existing L/Cs xxxxxx2865 (balance at 2/25/18 of $4,775k)

US Bank cash P-Card account xxxxx1284 (balance at 2/25/18 of $500k)

Citizens Bank Cash collateral for existing L/Cs xxxxxx4751 (balance at 2/25/18 of $573k)

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.

Prior Period Adjustment:

During February, the Company recorded a prior period adjustment for 2017. The adjustment relates to the accounting treatment of DIP Loan issuance fees of $2.4M, which were originally expensed when incurred in October 2017. As a result of the change in treatment, the Company has capitalized the costs and will amortize the amount over the remaining term of the DIP Agreement (currently through June 2018). “Interest expense, net” within Appvion, Inc. is the only P&L line item impacted.

MOR

(04/07)


In re: Appvion, Inc. et al.,		Case No. 17-12082 (KJC)
Debtors		Reporting Period: 1/29/18 - 2/25/18

Notes to the Monthly Operating Report

Notes to MOR 3:

Basis for Presentation

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

Prior Period Adjustment:

Refer to note above in Notes to MOR 2. “Other accrued liabilities” within Appvion, Inc. is the only B/S line item impacted.

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: 1/29/18 - 2/25/18

MOR - 1

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

For the Period January 29, 2018 through February 25, 2018

(Unaudited)


In Thousands USD	Appvion, Inc.			Paperweight Development Corp		PDC Capital Corp		Accounts Receivables Funding I LLC			APVN Holdings LLC
Operating Receipts:
Collections	$	12,915		$	—	$	—	$	42,677		$	—
Intercompany Transfer (Debtor)		40,763			—		—		—			—
Intercompany Transfer (non-Debtor)		1,947			—		—		—			—
Less Deposits in Transit		—			—		—		—			—

Total Operating Receipts	$	55,626		$	—	$	—	$	42,677		$	—

Operating Disbursements:
Payroll & Taxes	$	(7,650	)	$	—	$	—	$	—		$	—
Pension		—			—		—		—			—
Materials		(36,043	)		—		—		—			—
Repairs & Maintenance		(636	)		—		—		—			—
Utilities		(2,453	)		—		—		—			—
Freight		(3,483	)						—
Insurance		(1,527	)		—		—		—			—
IT & Professional Services		(409	)		—		—		—			—
Customer Rebates		(1,218	)		—		—		—			—
Unclassified		(3,952	)		—		—		—			—
Intercompany Transfer (Debtor)		—			—		—		(40,763	)		—
Intercompany Transfer (non-Debtor)		—			—		—		(2,478	)		—
Change in outstanding checks and payments in transit		(2,508	)		—		—		—			—

Total Operating Disbursements	$	(59,879	)	$	—	$	—	$	(43,241	)	$	—

Non-Operating Cash Flows:
Restructuring Professional Fees	$	(2,532	)	$	—	$	—	$	—		$	—
KERP / KEIP		—			—		—		—			—
CapEx		(234	)		—		—		—			—
Cash Collateral and L/Cs		—			—		—		—			—
Interest / Fees		(2,439	)		—		—		—			—
A/R Securitization Payoff		—			—		—		—			—
Other		—			—		—		—			—

Total Non-Operating Cash Flows	$	(5,205	)	$	—	$	—	$	—		$	—

Total Disbursements	$	(65,084	)	$	—	$	—	$	(43,241	)	$	—

*Net Cash Flow*	$	*(9,458*	)	$	—	$	—	$	*(565*	)	$	—

Beginning Cash Balance	$	10,049		$	—	$	—	$	1,546		$	—
Net Cash Flow		(9,458	)		—		—		(565	)		—
Drawdown/Paydown (+/-)		12,000			—		—		—			—

Ending Cash Balance	$	12,591		$	—	$	—	$	981		$	—

MOR

(04/07)


In re: Appvion, Inc. et al.,		Case No. 17-12082 (KJC)
Debtors		Reporting Period: 1/29/18 - 2/25/18

MOR - 1A

BANK RECONCILIATIONS

As of February 25, 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	$	11,468	$	0	$	0	$	0		$	11,468
Appvion, Inc.		Fifth Third Bank	xxxxxx1944		0		0		0		0			0
Appvion, Inc.		Fifth Third Bank	xxxxxx7683		49		0		0		(0	)		49
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		851		0		0		(2	)		849
Appvion, Inc.		Citibank London	xxxx1378		160		0		0		0			160
Appvion, Inc.		BMO Bank	xxx431		63		0		0		0			63
Total				$	12,591	$	0	$	0	($	2	)	$	12,589
Accounts Receivables Funding I LLC		Royal Bank of Canada	xxx8812	$	593	$	0	$	0	$	0		$	593
Accounts Receivables Funding I LLC		Royal Bank of Canada	xxx4107		44		0		0		0			44
Accounts Receivables Funding I LLC		Fifth Third Bank	xxxxxx8457		345		0		0		0			345
Accounts Receivables Funding I LLC		Fifth Third Bank	xxxxxx8465		0		0		0		0			0
Total				$	981	$	0	$	0	$	0		$	981

MOR

(04/07)


In re: Appvion, Inc. et al.,		Case No. 17-12082 (KJC)
Debtors		Reporting Period: 1/29/18 - 2/25/18

MOR - 1B

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID

For the Period January 29, 2018 through February 25, 2018

Amount

Check

Amount Paid

Payee

Period Covered

Approved

Payor

Number

Date

Fees

Expenses

AP SERVICES INC

1/1/18 - 1/15/18

318,548

Appvion, Inc.

ACH

1/29/2018

298,769

19,779

AP SERVICES INC

1/16/18 - 1/31/18

336,736

Appvion, Inc.

ACH

2/14/2018

327,578

9,158

COVINGTON & BURLING LLP

Dec 2017

2,931

Appvion, Inc.

ACH

2/12/2018

2,923

DLA PIPER

Note 1

105,621

Appvion, Inc.

ACH

1/30/2018

105,621

DLA PIPER

Note 1

215,016

Appvion, Inc.

ACH

1/30/2018

215,016

FTI CONSULTING INC

Dec 2017

120,266

Appvion, Inc.

ACH

2/13/2018

120,000

266

FTI CONSULTING INC

Oct - Nov 2017

205,430

Appvion, Inc.

ACH

2/13/2018

201,290

4,140

GUGGENHEIM SECURITIES LLC

Note 1

200,000

Appvion, Inc.

ACH

1/30/2018

200,000

LOWENSTEIN SANDLER LLP

Note 1

48,498

Appvion, Inc.

ACH

1/30/2018

48,498

O’MELVENY & MYERS LLP

prepetition

3,775

Appvion, Inc.

Wire

2/13/2018

3,775

O’MELVENY & MYERS LLP

Jan 2018

507,513

Appvion, Inc.

ACH

2/22/2018

505,901

1,612

PJT PARTNERS LP

Feb 2018

151,509

Appvion, Inc.

ACH

2/12/2018

150,000

1,509

PRIME CLERK LLC

Jan 2018

50,796

Appvion, Inc.

ACH

2/23/2018

42,498

8,298

STROOCK & STROOCK & LAVAN LLP

Dec 2017

265,749

Appvion, Inc.

ACH

2/7/2018

264,723

1,026

Total

2,532,389

2,486,592

45,796

Note 1 - Represents Q4 2017 holdback fees paid early in error; these holdbacks have subsequently been approved for payment by the Court

MOR

(04/07)


In re: Appvion, Inc. et al.,		Case No. 17-12082 (KJC)
Debtors		Reporting Period: 1/29/18 - 2/25/18

MOR - 2

STATEMENTS OF OPERATIONS

For the Period January 29, 2018 through February 25, 2018


In Thousands USD	Appvion, Inc.			Paperweight Development Corp			PDC Capital Corp		Accounts Receivables Funding I LLC			APVN Holdings LLC
Net sales	$	53,198		$	—		$	—	$	—		$	—
Cost of sales		47,510			—			—		—			—

Gross profit		5,688			—			—		—			—
Selling, general, and administrative expenses		7,522			—			—		—			0

Operating income (loss)	$	(1,834	)	$	—		$	—	$	—		$	(0	)

Other expense (income)
Interest expense, net	$	2,972		$	107		$	—	$	—		$	—
Reorganization items, net		4,126			—			—		—			—
Other Pension Expense		—			—			—		—			—
Foreign exchainge (gain) loss		78			—			—		16			—
Other expense (income)		26			—			—		—			—

Total other expense (income)	$	7,202		$	107		$	—	$	16		$	—

Income (loss) before income taxes	$	(9,036	)	$	(107	)	$	—	$	(16	)	$	(0	)
Provision for income taxes		—			—			—		—			—

Net income (loss)	$	(9,036	)	$	(107	)	$	—	$	(16	)	$	(0	)

MOR

(04/07)


In re: Appvion, Inc. et al.,		Case No. 17-12082 (KJC)
Debtors		Reporting Period: 1/29/18 - 2/25/18

MOR - 3

BALANCE SHEETS

As of February 25, 2018


In Thousands USD	Appvion, Inc.			Paperweight Development Corp			PDC Capital Corp		Accounts Receivables Funding I LLC			APVN Holdings LLC
ASSETS
CURRENT ASSETS
Cash	$	12,591		$	—		$	—	$	981		$	—
Restricted Cash		6,325			—			—		—			—
Accounts receivable		60,624			—			—		—			—
Receivables - affiliated		33,969			—			—		—			—
Inventory		92,530			—			—		—			—
Other current assets		18,760			—			—		—			—

Total current assets	$	224,799		$	—		$	—	$	981		$	—

Property, plant, and equipment, net	$	189,461		$	—		$	—	$	—		$	—
Intangible Assets		34,241			(2,181	)		—		—			—
Other Assets		5,043			(349,824	)		12		—			—

Total assets	$	453,544		$	(352,005	)	$	12	$	981		$	—

LIABILITIES AND STOCKHOLDER’S EQUITY

CURRENT LIABILITIES
Current portion of long-term debt	$	320,185		$	—		$	—	$	—		$	—
Accounts payable		26,018			—			—		—			—
Payable to affiliated		—			31,164			—		3,970			—
Accrued interest		2,165			—			—		—			—
Other accrued liabilities		26,202			—			—		—			—

Total current liabilities	$	374,570		$	31,164		$	—	$	3,970		$	—

LONG-TERM LIABILITIES
Long-term debt, net	$	—		$	—		$	—	$	—		$	—
Postretirement benefits other than pension		—			—			—		—			—
Accrued pension		—			—			—		—			—
Liabilities subject to compromise		432,058			—			—		—			—
Other long-term liabilities		50			—			—		—			—

Total liabilities	$	806,678		$	31,164		$	—	$	3,970		$	—

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		(1,003,401	)		(474,929	)		—		(2,989	)		—
Purch Price Adj - Affiliated		299,227			—			—		—			—
Accumulated other comprehensive income		16,462			—			—		—			—

Total stockholder’s equity		(353,134	)		(383,169	)		12		(2,989	)		—

Total liabilities and stockholder’s equity	$	453,544		$	(352,005	)	$	12	$	981		$	—

MOR

(04/07)


In re: Appvion, Inc. et al.,		Case No. 17-12082 (KJC)
Debtors		Reporting Period: 1/29/18 - 2/25/18

MOR - 4

SUMMARY OF UNPAID POSTPETITION DEBTS

As of February 25, 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	$	23,926	$	2,092	$	0	$	0	$	0	$	26,018

MOR

(04/07)


In re: Appvion, Inc. et al.,		Case No. 17-12082 (KJC)
Debtors		Reporting Period: 1/29/18 - 2/25/18

MOR - 5

ACCOUNTS RECEIVABLE AGING

As of February 25, 2018


In Thousands USD	Days Aged
In Thousands USD	Current		0-30		31-60		61-90		Over 90		Total
Appvion, Inc.
Trade	$	54,003	$	3,334	$	41	$	38	$	427	$	57,843
Other		3,353		0		0		0		0		3,353
Reserve		0		0		0		0		0		(573	)

Total	$	57,356	$	3,334	$	41	$	38	$	427	$	60,624

MOR

(04/07)


In re: Appvion, Inc. et al.,		Case No. 17-12082 (KJC)
Debtors		Reporting Period: 1/29/18 - 2/25/18

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.	Note 1

Note 1 - The Company opened the following account during the period:

1. Account xxxxxx4751 at Citizens Bank on 2/21/18, used for cash collateral for L/Cs

MOR

(04/07)

Signature of Authorized Individual*

Alan D. Holtz

Chief Restructuring Officer

Printed Name of Authorized Individual

Title of Authorized Individual

PAPERWEIGHT DEVELOPMENT CORP 8-K