WISCONSIN RAPIDS, Wis. (WSAU) — A large central Wisconsin manufacturer may emerge from bankruptcy proceedings in about a month.
Verso Corporation entered into Chapter 11 bankruptcy in January, and their reorganization plan was approved by a Delaware judge yesterday. In a written statement issued by Verso, they say the company’s reorganization plan had the overwhelming support of all classes of creditors, and that “Verso will emerge from bankruptcy with a unified, highly de-levered capital structure that will position the company to successfully adapt and compete in the dynamic global marketplace.” President and CEO David J. Paterson said, “Our smooth path through this critical step in the restructuring process would not have been possible without the strong support of our funded debtholders and the Official Unsecured Creditors Committee and the affirmative vote on our plan of reorganization by our creditors.”
Verso Corporation purchased the coated paper manufacturing operations in Wisconsin Rapids and Stevens Point two years ago from New Page and owns six other paper mills in the U.S.
When completed, about 2.4 billion in debt will be off the books. The amount of the debt reduction is a billion dollars more than Verso paid for the Wisconsin Rapids and Stevens Point mills when they acquired them from New Page two years ago.
The two central Wisconsin mills were formerly owned by New Page, Stora Enso, and Consolidated Paper before that.
