NewPage Parent Files for Chapter 11 RestructuringOctober 2011
MIAMISBURG, OH—The parent company of NewPage Corp. and some of its U.S. subsidiaries have filed for Chapter 11 bankruptcy in order to facilitate an orderly debt restructuring. NewPage's product portfolio includes coated freesheet, coated groundwood, supercalendered, newsprint and specialty paper.
NewPage Group and certain of its U.S. subsidiaries have commenced voluntary Chapter 11 cases, which are pending in the U.S. Bankruptcy Court for the District of Delaware. The company's Consolidated Water Power subsidiary is not part of the filing.
Separately, the company's Canadian subsidiary, NewPage Port Hawkesbury, has brought proceedings before the Supreme Court of Nova Scotia under the Companies' Creditors Arrangement Act of Canada (CCAA). In order to maximize efficiency in both the U.S. and Canadian Court processes, NewPage and NewPage Port Hawkesbury have executed a Settlement and Transition Agreement, subject to Canadian Court approval.
To help ensure it has adequate liquidity to continue operating throughout the restructuring, NewPage has obtained a commitment led by J.P. Morgan for up to $600 million in Debtor-in-Possession (DIP) financing.
On Aug. 22, NewPage announced that it would take downtime at NewPage Port Hawkesbury due to market and economic conditions that had prevented it from profitably operating the mill for more than a year. NewPage Port Hawkesbury plans to use funds arising from its Settlement and Transition Agreement to continue a "hot idle" at the mill and preserve the value of its assets while it continues discussions with potential buyers.