Norske Skog: Update on recapitalization process
Norske Skog has received a well-developed recapitalization proposal from a substantial number of the secured holders of the SSN (EUR 290m, 2019) bond and the NSF (EUR 100m, 2020) loan, as detailed in the 28 July 2017 stock exchange release. Certain unsecured bondholders have further provided an alternative proposal. To further secure the financial situation of the operating business, Norske Skog is in the process of receiving a commitment letter for a EUR 16 million liquidity facility from a substantial number of the holders of the SSN and NSF.
"We are very pleased that key stakeholders are willing to support the business operations of Norske Skog through liquidity facilities like the offered loans. Our paper mills are highly competitive business units with a prosperous future irrespective of the final solution to the group's capital structure. We have now secured the operating business by both relief on interest payments and this new financing, and there should be no reason to question the stability of our operating business through the refinancing" said Lars P.S. Sperre, President and CEO of Norske Skog. Click Read More below for additional detail.