Verso bankruptcy reorganization gets the go ahead
A judge at the U.S. Bankruptcy Court in the District of Delaware has confirmed the Chapter 11 bankruptcy reorganization plan of Verso Corp., the Memphis, Tenn.-based owner of the Jay paper mill.
The confirmation from Judge Kevin Gross announced on Thursday, comes less than five months after Verso announced that it had filed for bankruptcy in late January. In a release, the company said it expects to emerge from bankruptcy protection by the end of July.
"Verso is extremely pleased with this speedy and successful outcome," said Verso President and CEO David J. Paterson, in a prepared statement. "Our smooth path through this critical step in the restructuring process would not have been possible without the strong support of our funded debt holders and the Official Unsecured Creditors Committee and the affirmative vote on our plan of reorganization by our creditors.”
Verso cited the waning demand for coated paper and increased competition from imported products as factors in the decision for the bankruptcy filing.
In its first quarter earnings report released at the end of May, Verso posted an $88 million net loss and a $110 million operating loss, close to double what it was the same quarter last year.
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