NewPage completes Ch. 11 financial restructuring
NewPage Corp., owner of the Rumford paper mill employing 900 workers, has emerged from Chapter 11 bankruptcy with a "sustainable capital structure" that will enable the $3.5 billion producer of printing and specialty papers in North America to stay in business.
The financial restructuring, confirmed on Dec. 14 by the U.S. Bankruptcy Court for the District of Delaware in Wilmington, Dela., took effect on Dec. 21.
In the restructuring, NewPage secured financing led by Goldman Sachs Lending Partners LLC of a $500 million term loan plus $350 million in revolving credit led by J.P. Morgan Stanley Securities LLC.
"This is an exciting day for all of us at NewPage," said George F. Martin, president and chief executive officer. "We have successfully completed our restructuring, and we have emerged as a financially sound company. This step helps to solidify our position as the leading North American producer of printing and specialty papers. We look forward to continuing to provide our customers with exceptional service and high-quality products, operating safe and efficient mills and being a responsible community member."
Jay A. Epstein, senior vice president and chief financial officer for NewPage, added, "Through the reorganization process, we significantly reduced our debt and emerged with a sustainable capital structure. Our exit facility will provide ample liquidity to meet all of our working capital and capital investment needs."
NewPage, which is owned by private equity investment firm Cerberus Capital Management, filed for bankruptcy in September 2011. At that time it listed total assets of more than $1 billion and at least $1 billion in debt. In July the company announced that it was ending merger talks with Verso Paper Corp., with mills in Jay and Bucksport, citing "significant downside risks to its stakeholders, employees, and business."
NewPage stated in its release that the economic restructuring protects 6,000 jobs. The company is headquartered in Miamisburg, Ohio. In addition to its mill in Rumford, the company owns paper mills in Kentucky, Maryland, Michigan, Minnesota and Wisconsin. These mills have a total annual production capacity of approximately 3.5 million tons of paper.
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