JAY – Verso Corporation has emerged from bankruptcy, the company announced in a statement released Friday, significantly reducing the company’s debt, providing exit financing and receiving permission to list the company’s stock on the New York Stock Exchange.
Verso Corporation filed for Chapter 11 bankruptcy on Jan. 26 in the U.S. Bankruptcy Court for the District of Delaware. It had been publicly referring to the potential filing as early as November 2015, when it said in a statement that its projections led to “substantial doubt about our ability to continue as a going concern for the next 12 months.”
Locally, the company has dramatically scaled back production at the Androscoggin mill, shutting down two machines and laying off 300 of its 863 workers. It also sold a subsidiary energy company to Eagle Creek Renewable Energy LLC, including four hydroelectric generation facilities in Livermore Falls, Livermore and Jay, for $62 million.
Friday, David J. Paterson, Verso president and chief executive officer, said that the company’s emergence from bankruptcy “would not have been possible without the support of our lenders, whose willingness to invest in our company demonstrates their confidence in Verso’s prospects for long-term growth and value creation.”
The restructuring allowed Verso to reduce its debt by $2.4 million and provided $595 million in exit financing to support ongoing operations and capital investment. That 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.
As provided in Verso’s plan of reorganization, all shares of the company’s common stock issued prior to the bankruptcy proceeding were cancelled upon emergence, and Verso has issued new shares of common stock to the holders of its previously outstanding funded debt in return for their allowed claims against the company. In connection with its emergence, Verso also received approval from the New York Stock Exchange for Verso’s Class A common stock to be listed for trading on the NYSE.
“We believe Verso is poised for sustainable profitability,” Paterson said, “and we are excited about the opportunities that lie ahead.”
Most businesses would remain in business if they could just erase their debt. I fear that we haven’t seen the last of this dilemma.
Wouldn’t it be nice if we could all just erase our debt? Oh, but that’s right…how many businesses would go out of business if they weren’t paid what was owed to them.
The Androscoggin Mill is probably the single most important business in Franklin County, so it’s continued operation is very important to the financial survival of the County and of course the Town of Jay. No doubt, the bankruptcy plan was well orchestrated and years in the making (which also included another failing company-New Page). It was a complex, well thought out plan for sure and in the end, it worked. Whether you agree with the outcome or not, the Androscoggin Mill is operating and continues to employee people and purchasing products and services locally and State wide. It also provides a critical tax base for this County. So, Mr. David Patterson and your professional associates, would you please man up and fix one of the not so published disappointments of your successful bankruptcy. This would be the vacation pay that was earned and not paid to the effected severed employees at the Androscoggin Mill. The vague language that you hid behind to avoid paying what was owed to your employees was lame at best. Please do the right thing and follow through with these payments as your announced new fortunes should now allow you to the respectable thing.
Respectfully,
Jerry Gilchrist (former proud Androscoggin Mill employee)
I got done last November and just recently got another check from verso. I believe it was for two days vacation time that was on the books. keep your eyes on your account.
Yes… Emerges from bankruptcy… ….and still in the business of manufacturing a product the world needs less and less of everyday. Anyone not proactively looking for new job is kidding themselves.
Same as always! The comments are always thriving off the negative instead of the positive. People may not like what happened, but the fact of the matter is that there are still 500 employees in our community that are still employed in Jay. It could have been worse and we could have no mill, no help with taxes and 500 less jobs. As for the speculation of what will happen… it’s just that….speculation! Blah Blah Blah……..no one knows what will happen. You may think you know what will happen, but unless you have a crystal ball it is simply speculation! It’s been the same comments for YEARS…always the negative and never the positive. How is this for a change? POSITIVE FACT, the mill is still running…end of story!