Verso Paper Company Files for Bankruptcy
Paper company Verso Corp., which owns the Verso Paper Mill in Duluth, has filed for Chapter 11 bankruptcy protection, though the company says the move will have virtually no impact on its daily business.
Memphis-based Verso said Tuesday the bankruptcy filing is intended to help the company restructure debt.
Verso President and CEO David J. Paterson says in a statement that the plan is to eliminate $2.4 billion of outstanding debt, and it would result in the holders of its funded debt receiving Verso equity.
Verso also expects to finalize a debtor-in-possession financing package totaling up to $600 million, in a move designed to bolster daily operations as it reorganizes.
Verso says it does not expect to close any mills, though it will “continue to evaluate its mills to ensure that they are operating as efficiently as possible.”