Verso Paper Corp. Announces Discussions with Holders of First-Lien Notes of NewPage Corporation Regarding Potential Business Combination:MEMPHIS, Tenn, USA, Verso Paper Corp. (NYSE:VRS) announced today that it has held discussions with certain holders of the 11.375% first-lien senior secured notes of NewPage Corporation in an effort to achieve a potential business combination involving Verso and NewPage as part of a consensual plan of reorganization in NewPage’s Chapter 11 bankruptcy proceedings...The terms of Verso’s proposed transaction would provide NewPage’s first-lien noteholders with $1.425 billion of value...In addition, the proposed transaction would include a 100% recovery in cash to repay NewPage’s debtor-in-possession financing...Verso believes that a combination with NewPage would create a stronger business in the global coated and supercalendered paper industry because of the material cost savings that would be achieved.
Separately, It was reported that NewPage sees significant downside risks in Verso combination and does not expect this to be further discussed;
NewPage Corporation (NewPage) today 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 www.NewPageRestructuring.com.
