The Jay-based Verso Paper Corp. has officially canned plans to merge with NewPage Corp., which filed for bankruptcy late last year, according to a press release on Verso's website.
Earlier this summer, Verso said it offered first-lien holders of NewPage Corp. a $1.425 billion deal, consisting of $1.075 billion in new Verso first-lien notes, $200 million in cash and $150 million in Verso common stock. The proposed deal also included repaying 100% of the $600 million debtor-in-possession financing NewPage received from JP Morgan to continue operating, as well as some level of recovery for unsecured creditors.
NewPage officials said then that a merger would have "posed significant downside risks to its stakeholders, employees and business."
Verso had kept open the possibility of a deal with NewPage's creditors until its announcement ending those discussions earlier this week.