Jay mill owner announces restructuring deal
Illustration / Matt Selva
The Tennessee paper producer that filed for Chapter 11 bankruptcy earlier in the week has announced that it’s reached a restructuring deal on its $2.4 billion debt.
Verso Paper Corp., which owns a paper mill that currently employs 550 in Jay, also announced that it arranged a $600 million financing package that will allow it to continue operating during the bankruptcy process, according to The Portland Press Herald and Bangor Daily News.
A statement released by Verso to the U.S. Bankruptcy Court in Delaware, where the company is incorporated, disclosed that in return for eliminating the debt, “substantially all” of the company’s equity would be transferred to creditors.
Verso cited the increase of importing several varieties of paper to the United States and the decrease in domestic demand as key reasons for the bankruptcy filing.
According to the bankruptcy filing, awaiting court approval of an antitrust settlement with the U.S. Department of Justice in regards to its $1.4 billion purchase of NewPage delayed the full expected financial benefits of the acquisition by more than a year, according to the bankruptcy filing.
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