Sartell Mill Shutdown Will Cost Verso Dearly

Shutting down the Sartell, MI, paper mill will cost Verso Paper Corp. more than the entire company is worth, Verso revealed yesterday. The Memorial Day fire and explosion at the mill...will result in shutdown costs of approximately $114 million, Verso stated in its quarterly earnings report to the Securities and Exchange Commission.

The company’s stock, beaten down by concern about the company’s long-term viability, was worth just over $75 million at the end of the day.

Verso has $117.7 million available for future borrowing, down from $160 million three months ago, which will keep it solvent for at least 12 months,