The chairman for NewPage Holdings said his company’s shareholders would likely not approve a $1.4 billion proposed merger with Verso if the plan does not allow NewPage to restructure much of its debt.
The Portland Press Herald reported a filing with the U.S. Securities and Exchange Commission revealed that Verso has requested to waive or amend a previously agreed-upon provision that would allow NewPage to restructure a significant amount of its debt. In January, Verso executives told NewPage that investors did not like that financing component of the proposed merger.
NewPage Chairman Mark Angleson wrote in response that if Verso is not able to comply with the original terms of the proposed deal, including the debt-restructuring plan, the company “will re-evaluate the merger and consider all our options,” the paper reported.
The proposed merger would create a company with 2,250 workers at three paper mills in Maine, eight manufacturing facilities elsewhere around the country and a combined $4.5 billion in annual sales.
