Mercer International Inc. (Nasdaq: MERC, TSX: MRI.U) today reported results for the second quarter ended June 30, 2015. Operating EBITDA* in the second quarter of 2015 was $50.0 million, compared to $41.9 million in the comparative quarter of 2014 and $61.3 million in the prior quarter of 2015. For the second quarter of 2015, net income was $16.4 million, or $0.25 per basic and diluted share, compared to $0.6 million, or $0.01 per basic and diluted share, in the comparative quarter of 2014.
Norske Skog is pleased to announce that secured bond holders holding 65 % of the aggregate principal amount of the secured notes due in 2019 (the “Secured AHC”) have confirmed their support for the board’s proposal launched on 18 September. Norske Skog is currently working to gain support from the other secured and unsecured bondholders. “We are very pleased to have obtained support from the majority of the secured bond holders, and we are currently in dialogue with the group’s other secured and unsecured bond holders. The board’s proposal is the best solution given the circumstances, and should provide a better return for stakeholder groups than the alternative. The alternative will trigger a complex insolvency process, which will result in Norske Skog being 100% owned by the secured bond holders.” said Mr. Christen Sveaas, Chairman of Norske Skogindustrier ASA. Norske Skog will also enter into joint contingency planning with the Secured AHC to prepare for a potential insolvency process and share pledge enforcement on Norske Skog AS level if the board’s proposal does not obtain sufficient levels of support from other creditors. Even without sufficient approval level, normal operations at all Norske Skog’s mills will continue, and the value of Norske Skog and the interests of employees, customers, suppliers and local communities will be protected “The value of Norske Skog is the operating business units, which include seven profitable paper mills. These operations will continue as normal independent of the outcome of the recapitalization proposal. The secured bond holders are large professional investors with capital and ability to operate Norske Skog along with the employees,” said Mr. Lars P. S. Sperre President and CEO of Norske Skog.
The board’s recapitalization proposal requires the approval of a majority in number of holders and 75 % in value. The transaction will also need the support of existing shareholders of Norske Skogindustrier ASA, with a 2/3 majority in an extraordinary general meeting. Holders of Norske Skog bonds are reminded that the transactions envisaged under board’s proposal will not be implemented unless sufficient numbers of bond holders have returned executed lock-up agreements (as per the terms of the consent solicitation). Relevant holders are therefore encouraged to return these as soon as possible prior to 4pm (London time) on Friday 29 September 2017 should they wish to support the proposal. All holders of relevant Norske Skog bonds or loans can contact the following persons on all matters related to the board’s consent solicitation: