Norske Skog launches a recapitalization transaction that will significantly reduce the group's debt level and interest cost, increase the equity value, and position the company to deliver on its future growth strategy. Following consistent investor feedback, Norske Skog has discussed the transaction proposal with major debt and equity investors, and received general support for a transaction, which sees the unsecured bonds equitised. "After years of managing high debts in declining markets, Norske Skog now has a sustainable business portfolio with very competitive business units. The group generates an acceptable level of cash flow from operations, but too much is consumed by interest payments, leaving little to be reinvested in the existing business. This is a balanced recapitalization proposal that will substantially reduce the group's debt level and interest expenses, enabling the group to invest both in core business and green growth initiatives. The proposal is clearly in the best interest of all stakeholders and only less beneficial alternatives exist," said Mr. Lars P.S. Sperre, President and CEO of Norske Skog. Click Read More below for additional detail.
An investigation into imports of supercalendered paper from Canada found on a preliminary basis that producers and exporters there received countervailable subsidies ranging from 2.04 percent to 20.33 percent, the U.S. Department of Commerce said on Tuesday.
As a result, Commerce will ask U.S. Customs and Border Protection to require cash deposits as countervailing duties from Canadian exporters based on the preliminary rates.
Supercalendered paper is uncoated printing paper used to produce such materials as magazines, catalogs, corporate brochures, flyers and directories.
Commerce said it found preliminary subsidy rates of 20.33 percent for Port Hawkesbury Paper LP and 2.04 percent for Resolute FP Canada Inc, with all other producers and exporters in Canada assigned a rate of 11.19 percent.
The probe, announced in March, was sparked by complaints from an industry group consisting of Madison Paper Industries of Maine, owned by Finland’s UPM-Kymmene Corp, and Verso Corp of Ohio, and was backed by unions.
Commerce said in 2014 that imports of supercalendered paper from Canada were valued at an estimated $868.4 million. (Reporting by Eric Walsh and Krista Hughes; Editing by Eric Beech)