Verso Paper

Commentary: Coated Paper Shakeup Leaves Most U.S. Capacity in Foreign Hands
January 8, 2015

Yesterday, two momentous events occurred nearly simultaneously in the industry that makes coated paper for catalogs, magazines, inserts, and brochures. NewPage sold its Biron, WI, and Rumford, ME, mills to Catalyst Paper, which shifted about 12 percent of the nation's coated-paper capacity into Canadian hands.

The purchase of NewPage by Verso was completed a year and a day after it was first proposed. The U.S Justice Department, fearing a combined Verso-NewPage would have too large a market share, required the sale of the two NewPage mills for the takeover to be approved.

Verso Corp. Completes Its Acquisition of NewPage, Will Report $3.5B in Annual Sales
January 7, 2015

Verso Corp. has completed the acquisition of NewPage Holdings. With the completion of the NewPage acquisition, Verso will have approximately $3.5 billion in annual sales and approximately 5,800 employees in eight mills across six states. "The combination of Verso and NewPage creates a stronger, more stable company with an effective strategy to weather industry headwinds and reduce operating costs," said David Paterson, Verso’s president and CEO.

Verso Sued by Union in Effort to Block the Sale of Its Coated Paper Mill in Bucksport, ME
December 16, 2014

A union representing a portion of the workers at the Verso Paper mill in Bucksport has filed a federal lawsuit against the company in an attempt to block the sale of the mill to a scrap-metal company and open the way for a buyer that would keep the mill operating.

Employees had hoped that another paper company would step in to buy and operate the Bucksport mill, which has an annual production capacity of 350,000 tons of coated paper. But Verso announced a week ago that it was selling the mill along with its attached power plant to AIM Development.

Catalyst Paper Enters Agreement with NewPage, Rumford Paper to Buy Mills in Wisconsin and Maine (With Commentary from Dead Tree Edition)
October 31, 2014

Catalyst Paper announced yesterday that it has entered into an Asset Purchase Agreement with NewPage Corp., NewPage Wisconsin System and Rumford Paper to purchase the Biron paper mill located in Wisconsin and the Rumford pulp and paper mill located in Maine for consideration of US$74.0 million, subject to certain adjustments. "With this Transaction, Catalyst will be better able to serve new and existing customers through operational synergies and a more diversified and higher value suite of products," said Joe Nemeth, president and CEO of Catalyst.

Verso Paper to Close Its Bucksport, ME, Paper Mill Dec. 1, Displacing More Than 500 Workers
October 2, 2014

Hundreds of mill workers from across the state will find themselves without jobs at the beginning of the holiday season after Verso Paper's sudden announcement Wednesday that it will close its paper mill in Bucksport effective Dec. 1.

More than 500 employees will be out of work in the third mill closure in Maine this year, dealing a severe blow to the town of 5,000 people, which derives 47 percent of its tax revenues from the Verso mill.

"The Bucksport mill unfortunately has not been profitable for a number of years," said Dave Paterson, Verso’s president and CEO.

Crews Respond to Fire at the Former MN Verso Paper that Closed in 2012 After an Explosion
August 7, 2014

Multiple fire departments responded to a fire Wednesday evening at the shuttered former Verso Paper mill in Sartell, MN.

As smoke rose above the blue mill, which predates the city, onlookers gathered across the Mississippi River, on the bridge across the river and to the southeast.

At about 8 p.m. Wednesday, a fire was reported at the site, which is now owned by AIM Development USA. There was no word late Wednesday night on a possible cause.

Verso Moves One Step Closer to Acquiring NewPage, Completing Debt Restructuring Plan
August 1, 2014

At 11 p.m. Wednesday, Verso Paper Corp. completed a debt restructuring plan—a necessary step in its efforts to acquire NewPage Holdings, which operates paper mills in Wisconsin Rapids, Biron and Stevens Point.

Two types of Verso's debt—second-lien notes and subordinated notes—were restructured Wednesday, which are debts inferior to a company's first-lien notes. If a company goes bankrupt, holders of first-lien notes will be paid first, followed by holders of second-lien notes and then subordinated notes.

Verso was successful in getting 75.6 percent of creditors, who hold $299.5 million in second-lien notes, to reduce the amount the company owes in those notes by

Verso Amends Subordinated Debt Exchange Offer, Holders of 70 Percent of Notes Participating
July 25, 2014

Verso Paper has announced that two of its wholly-owned subsidiaries, Verso Paper Holdings and Verso Paper, have amended the terms of their previously announced exchange offer and consent solicitation with respect to their outstanding 11 3/8 percent Senior Subordinated Notes due 2016 (the "Old Subordinated Notes" and, the related exchange offer, the "Subordinated Notes Exchange Offer").

Verso Paper Shareholders to Vote July 30 on Proposals Key to Its Acquisition of NewPage
July 17, 2014

On July 30, Verso Paper shareholders will vote on proposals key to its acquisition of NewPage, reported the Bangor Daily News. The $1.4 billion purchase would have a significant impact on employment in Maine, creating jobs for about one-third of Maine’s paper millworkers at Verso’s mills in Bucksport and Jay and NewPage’s Rumford mill, the newspaper said.

Verso Commences Debt Exchange Offers; Holders of 54% of Second Lien Notes Sign Support Agreement
July 3, 2014

Two wholly owned subsidiaries of Verso Paper, Verso Paper Holdings and Verso Paper, have launched debt exchange offers. Completing the exchange offers is an important step toward Verso's acquisition of NewPage, which, pending antitrust clearance and the exchange offers closing, is still expected to close in the second half of 2014. At present, holders of 54 percent of second lien notes have signed a support agreement.