Verso Receives Court Approval to Continue Business Operations During Restructuring
MEMPHIS, Tenn. — March 4, 2016 —Verso Corp. has announced that it has received final approval from the U.S. Bankruptcy Court in the District of Delaware for a variety of first day motions related to its voluntary restructuring under Chapter 11 of the U.S. Bankruptcy Code. These final orders issued by the court will allow Verso to continue operating its business in the ordinary course as it restructures its balance sheet.
"With the approval of our first day motions, including the authorization of up to $600 million in debtor-in-possession (DIP) financing, Verso has transitioned smoothly into the Chapter 11 process," says Verso president and CEO David Paterson. "As we move forward with our efforts to strengthen Verso's balance sheet and position the company for long-term success, the court's approval of these first day motions provides confidence that Verso has the ability to continue operating our business as usual throughout the restructuring process."
The approved first day motions authorize Verso to, among other things, continue to pay employee salaries, wages and benefits, make qualified retirement plan payments, honor customer programs and pay suppliers in the ordinary course of business for post-petition goods and services. Importantly, approval of the motion granting Verso authority to access up to $600 million in DIP financing provides the company with significant operational flexibility and sufficient liquidity that Verso believes will support its ongoing operations for the foreseeable future during the Chapter 11 process.
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