Norske Skog received transaction proposals within its recapitalization process

Norske Skog received a jointly supported transaction proposal from an ad hoc committee representing the majority of the holders of the EUR 290 million Senior Secured Notes due in 2019 and the holders of the EUR 100 million Norwegian Securitization Facility. According to the announcement, the company has also received various alternative recapitalization proposals from other key stakeholders.

The company informed that it will facilitate discussions among the different stakeholder groups over the near term, with a view to achieving a consensual implementation of a recapitalization transaction.

Henrik A. Christensen, chairman of the board of Norske Skog, commented:

“The purpose of the recapitalization process is to establish a sustainable balance sheet, which will provide a solid platform for our competitive business units and new growth initiatives. The proposals set forth by major investor groups are important contributions to achieve a substantial reduction in the total debt and annual interest payments for the group. The board will now facilitate discussions for stakeholders across the capital structure. Given the book equity and the large debt burden of the company, I am optimistic that the key stakeholders will bridge their differences and reach a consensual agreement.

A standstill agreement is the only viable option for the time being for Norske Skog, taking into account that there are movements among key stakeholder groups to find a sustainable debt solution for Norske Skog.”

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 appointed an interim President and CEO.

About Norske Skog:

The company is a leading producer of newsprint and magazine paper. The company has 9 paper mills around the world.

Source: Woodbizforum