Norske Skog announced that the deadline for the current exchange offers and consent solicitations has been further extended from July 31, 2017 to August 11, 2017.
Lars P.S. Sperre, President and CEO of Norske Skog, commented:
“We are working relentlessly to facilitate inter-creditor dialogue and discussions in order to come to a position to present a revised transaction proposal which achieves the main goals we set when the process was launched. We are hopeful that a revised transaction proposal which has strong support can be announced within a relatively short period of time.”
The standstill agreement entered into with the SSN AHC, in respect of the non-payment of the EUR 17 million interest payment due on the SSNs on June 15, 2017, has been extended to provide forbearance up to August 11, 2017. Additionally, Norske Skog AS has entered into a new standstill agreement with the NSF holders providing forbearance up to August 11, 2017 in respect of the non-payment of the EUR 3 million interest payment due on the NSF on June 30, 2017. These forbearances provide the group with certain protections in relation to the non- payment of the respective interest payments beyond the grace period.
Norske Skog launched a recapitalization transaction at the beginning of June 2016. It is expected to 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.
About Norske Skog:
The company is a leading producer of newsprint and magazine paper. The company has 9 paper mills around the world.