Norske Skog has decided to extend the consent solicitation deadline for the ongoing recapitalization proposal from 29 September until Tuesday 3 October at 17:00 CET. The consent solicitation deadline has been extended from Friday 29 September until Tuesday 3 October 2017 at 17:00 CET. Norske Skog will use the period prior to the new expiration deadline to continue discussions with various stakeholder groups to try to achieve sufficient support for a consensual recapitalization solution for the Norske Skog group. The Board of Directors will continue to follow and evaluate the situation thoroughly during this period. - The recapitalization process is challenging, as we knew it would be, but we want to allow time to finalize our discussions with the various stakeholders. We believe that the extension of the consent deadline will improve the chances of reaching a solution, especially after the last day's actions from different stakeholders. As we have previously made clear, the board of Norske Skogindustrier ASA firmly believes that only less beneficial alternatives to a consensual solution exist. Norske Skog has 7 profitable business units that will continue normal operations regardless of the outcome of the consent solicitation process," said Mr. Christen Sveaas, Chairman of Norske Skogindustrier ASA.
KP Tissue Inc. (“KPT”) (TSX: KPT) and Kruger Products L.P. (“KPLP”) today announced KPLP’s plan to add to the capacity of its Sherbrooke expansion project by constructing a double width Light Dry Crepe (LDC) tissue machine with a capacity of at least 60,000 MT instead of the previously announced 30,000 MT LDC tissue machine.
This additional capacity will allow us to accelerate the growth of our business and continue to provide our customers across North America with high quality tissue products like Cashmere®, SpongeTowels®, Scotties® and Purex® in Canada and White Cloud® in the U.S., said Dino Bianco, CEO with KPLP.
With this enhancement, the total estimated cost of the Sherbrooke expansion project, which also includes the previously announced addition of a bathroom tissue converting line (“BT Line”) to the existing TAD Sherbrooke plant and a new plant that will house a facial tissue converting line (“FT Line”) with the double width LDC tissue machine, has increased from $240 million to $351.5 million. The additional costs of the project will be financed by an increase in the senior bank facility for the project from $75 million to $150 million and an equity investment by KPLP of $36.5 million.
The construction schedule remains the same. The BT Line and FT Line will be commissioned in 2022 and 2023 respectively while the LDC tissue machine is expected to start up in 2024.