Norske Skog: Update on recapitalization process

Pursuant to the recommendation from the election and remuneration committee of Norske Skog announced earlier today, several changes in board of directors were proposed to the extraordinary general meeting to be held tomorrow, 24 August 2017. On this basis, the planned public launch of a revised recapitalization transaction will be postponed in order to provide the new board with an opportunity to review the recapitalization transaction and allow for discussions with relevant stakeholders prior to a public launch. In the interim, the work with finalizing the documentation for the committed EUR 16 million liquidity facility continues.

As previously announced, a significant majority of senior secured bond holders (SSN) (EUR 290 mill, due in 2019) and the holders of the Norwegian Securitisation Facility (NSF) (EUR 100 mill, due in 2020) have committed to provide a EUR 16 million liquidity facility to support the operating business of Norske Skog. The work with finalizing the documentation for this liquidity facility is being progressed in an expedite manner.

“The board and management of Norske Skog have worked intensely to prepare for a revised recapitalization transaction with support from the majority of the SSN holders and the holders of the NSF. Whilst both the company and these holders remain committed to further progress the transaction, we consider it natural that a new board is given an opportunity to review the recapitalization transaction prior to a launch, with the extraordinary general meeting being one day ahead” said Lars P.S. Sperre, President and CEO of Norske Skog.”

As part of the various agreements to be entered into in connection with a recapitalization transaction, it is envisaged that support undertakings and standstill agreements will be entered into. The short-term standstill arrangements previously entered into with the SSN and NSF holders will expire today. Furthermore, as a revised recapitalization transaction is intended to replace the current exchange offers and consent solicitations launched on 2 June 2017, these will now be terminated.
http://www.norskeskog.com/Default.aspx?ID=2890&t=2017-08-23T23:05:01+02:00

Related Posts

Resolute Forest Products Announces SC Price Increase

Please be advised that, effective with shipments on or after June 1, 2018, Resolute Forest Products will raise its SC paper prices. The products impacted by the price increase include, but are not limited to, the following: ResoluteSCA+; ResoluteSCA; ResoluteSCB; ResoluteSNC. The increases will be applicable to all basis weights and finishes, and all up charges apply.

Holmen invests to strengthen book paper and increase packaging paper production

To further strengthen Holmen's market-leading position in book paper and increase production of Holmen's new packaging product, INNR, the company is investing SEK 450 million in rebuilding a paper machine at Braviken Paper Mill. "In 2022, we launched a new corrugated board product, Holmen INNR, which has been well received by the market. Holmen's paper products have a low climate footprint and are lighter than traditional alternatives, making them resource efficient without compromising on strength, quality or overall feel," says Lars Lundin, Senior Vice President Paper. Rebuilding PM52 at Braviken Paper Mill will broaden the product range for book paper while enabling Holmen to efficiently increase the production of fluting for use in the centre layer of corrugated boxes. The rebuild is planned for autumn 2024 with an estimated cost of SEK 450 million.

Paper or Digital Bills and Statements: What Do U.S. Consumers Prefer?

Companies and organizations continue to promote the switch from print to digital forms of communication but is this cost-cutting in the best interests of the customer? Based on a June 2017 U.S. survey¹, 90% of respondents felt they should have the right to choose how they receive communications (printed or electronic) from financial organizations and service providers, and 83% thought consumers should not be charged more for choosing a paper bill or statement. However, corporations are increasingly charging their customers for paper statements.
Back To Top
×Close search
Search