The owner of former Miami Twp. paper producer NewPage announced it has emerged from bankruptcy following a success financial restructuring.
Memphis-based Verso Corp. said the company and its subsidiaries confirmed its Chapter 11 plan of reorganization by the U.S. Bankruptcy Court for the District of Deleware. The company filed for bankruptcy reorganization in late January a year after it acquired Miami Twp.-based NewPage in January 2015.
Verso’s restructuring reduced the company’s debt by $2.4 billion and includes $595 million in exit financing to support ongoing operations and capital investment, according to a news release.
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“Our emergence from bankruptcy less than six months after our Chapter 11 filings would not have been possible without the support of our lenders, whose willingness to invest in Verso demonstrates their confidence in our prospects for long-term growth and value creation,” said David Paterson, president and chief executive officer of Verso, in a statement.
The exit financing consists of an asset-based lending facility with borrowing capacity of up to $375 million led by Wells Fargo Bank, National Association, and a $220 million term loan facility with available loan proceeds of $198 million led by Barclays Bank PLC.
Paterson will serve as chairman of the board and will remain as president and CEO until his replacement is named, according to a release. Verso’s senior management team continues to lead the company.