NewPage Closes Door on Verso’s Business Combination Proposal
MIAMISBURG, OH—July 3, 2012—NewPage Corp. announced that it has been engaged in a series of discussions with its various constituents, including first lien note holders, second lien note holders and the Unsecured Creditors’ Committee, in an effort to finalize a consensual Chapter 11 plan. Information relating to these discussions has been posted on the NewPage restructuring website.
During these discussions, an ad hoc group of second lien note holders presented to an ad hoc group of first lien note holders an unsolicited proposal to combine NewPage and Verso Paper. After thoroughly evaluating this proposal, NewPage determined that the combination posed significant downside risks to its stakeholders, employees and business. The company has also been advised that the first lien note holder group did not support the proposal. Accordingly, NewPage does not anticipate further discussions regarding this proposal.
NewPage is the leading producer of printing and specialty papers in North America with $3.5 billion in net sales for the year ended Dec. 31, 2011. NewPage is headquartered in Miamisburg, OH, and owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota and Wisconsin. These mills have a total annual production capacity of approximately 3.5 million tons of paper.