The board of Directors of Norske Skogindustrier ASA has decided to file for bankruptcy at Oslo skifterett (Oslo bankruptcy court) today, Tuesday 19 December 2017. The board's decision is unanimous and is due to the fact that there is no longer a realistic opportunity to achieve a voluntary recapitalization solution for the Norske Skog group. The group's largest secured creditor, Oceanwood Capital Management Ltd (Oceanwood), has informed the board that it is not willing to support any such solution. The group's operational activities will continue in Norske Skog AS as normal with as little impact as possible from the bankruptcy proceedings of the listed Norske Skogindustrier ASA. The non-listed Norske Skog AS will be the new operating parent company of the Norske Skog group, and will continue the head office function that has been performed by Norske Skogindustrier ASA. The board and management of Norske Skogindustrier ASA have over an extended period worked hard to achieve a consensual recapitalization of the Norske Skog group and thereby avoid bankruptcy proceedings for the parent company. This work was well advanced and had broad support from the capital structure in October and November 2017. The board's decision to file for bankruptcy is therefore made with great disappointment that this goal was not achieved, said Christen Sveaas, Chairman of the board of Norske Skogindustrier ASA. Click Read More below for additional information.
Georgia-Pacific announced Thursday morning that they will leave the paper business, effectively laying off more than 600 workers at its plant in Port Hudson.
A spokesperson for Georgia-Pacific, Kelly Fergison, said the company will permanently shut down all paper machines, as well as its wood yard and pulp mill.
Employees are told they will stay on through March, at which point they will cease production.
They said they are not completely shutting down the facility. Roughly 300 employees will stay on as part of its consumer tissue and towel business.
Georgia-Pacific said this is not due to poor performance in Port Hudson, instead citing a declining market.
In a statement, Georgia-Pacific president Mike Adams said, “We will be working closely with our printing and writing customers during this time of transition.”