Norske Skog is working on development of new a sustainable, industrially based recapitalization proposal to the stakeholders of the group. According to the announcement, the recapitalization proposal will be based on the current operating performance and outlook for the Norske Skog group, and will seek to provide a robust industrial and financial platform for the future development of the group.
The company’s intention is to make public the industrially based recapitalization proposal on Monday, September 18, 2017, after which date the group’s financial creditors will be expected to have a 10 business day period until October 2, 2017 to accept or reject the Norske Skog’s board’s proposal.
The recapitalization proposal is expected to reduce the group’s debt position and interest payments to a level which leaves Norske Skog as an industrial company with a realistic and long term sustainable capital structure to enable future development of the group in a rather challenging international business environment.
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.
Earlier, Norske Skog entered into a loan agreement for a liquidity facility
About Norske Skog:
The company is a leading producer of newsprint and magazine paper. The company has 9 paper mills around the world.