Verso posts $43M loss for Q2 ahead of planned merger
Verso Paper, the Memphis-based company that employs around 1,450 workers at two mills in Maine, posted a $43 million loss for its second quarter, though it remains optimistic about its planned acquisition of another company that runs a mill in Maine.
The Bangor Daily News reported that Verso’s quarterly earnings report was issued as the U.S. Department of Justice continues to review the company’s proposed $1.4 billion acquisition of NewPage, which could create the state’s largest single paper company.
In addition to its $43 million loss, Verso also reported a drop in net sales to $320.9 million from $330.4 during the same quarter last year. Over the same period, the company reported that coated paper sales declined to $225.4 million from $253.1, while pulp sales increased to $49.7 million from $39.1 million.
Despite the posted loss, David Paterson, Verso’s CEO and president, said the company “continued to make good progress” toward its proposed merger with NewPage. Most recently, the company reached an agreement with more than half of its bondholders for an exchange offer, and Moody's Investors Service, the debt-rating agency, downgraded some of Verso's credit and bonds, adding that a merger could benefit the company.
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