Granville. Assets purchased

Australian Paper has announced a formal agreement to purchase the assets of Australian Envelopes, which has a facility at Granville, from administrators PPB Advisory. It is believed the deal will make Australian Paper's stationery subsidiary, Australian Office, the largest envelope manufacturer and overprinter in the country. The company already produces around 1 billion envelopes a year.

Granville. Industry reputation affected

Paper merchants expect the collapse of Australian Envelopes, which has a facility at Granville, to hurt the industry's reputation with insurers, as unsecured debts exceed $10 million, including $6.5 million owed to Australian Paper. According to PPB, the administrator is working through a number of expressions of interests from potential buyers and the fate of Australian Envelopes could be revealed at the next creditors meeting on 26 July.