Employees Acquire Appleton

The ESOP, as a benefit plan trust for company employees' equity ownership, is a tax-exempt entity under federal laws; thus, the S Corporation does not require cash distributions to the ESOP, as its shareholder, because it is not liable for income taxes.

Opportunity
In February, Appleton Papers and Arjo Wiggins Appleton announced that the two companies had agreed to explore a purchase of Appleton Papers through the use of an employee stock ownership plan.