Asia Pulp & Paper, a Singapore pulp and paper producer, had fallen from grace after being treated as an emerging market darling with investors. Through 1999, APP had raised almost $1 billion through three US public offerings, helping fund an ambitious expansion into China. But after pulp and paper commodity prices declined through 2000, APP witnessed deteriorating operating margins, incurred a net loss and was squeezed for liquidity. At the same time, its leverage continued to balloon. APP struggled to restructure the debt, with bondholders and equity investors losing billions. In this case students examine APP's financial details and growth history before discussing what alternative choices its management and bankers may have considered.

Case id: 100307
Supplemental Material: Teaching Note