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.

To facilitate ongoing discussions with stakeholders and finalization of revised transaction documentation, the deadlines for the existing exchange offers and consent solicitations and the forbearance provided pursuant to the existing short-term standstill agreements with certain creditors, have been extended to 18 August 2017. Both the exchange offers and consent solicitations and the short-term standstill agreements were due to expire on 11 August 2017. The short-term standstill agreements, entered into with certain holders of the SSN and the NSF, provide forbearance in respect of the non-payment of interest payments due in relation to the SSN and NSF, in order to preserve liquidity for the groups’ operating business. The forbearance provided pursuant to these short-term standstill agreements has now been extended to 18 August 2017, by which time it is expected that longer term standstill agreements will be entered into.

A strong interest in supporting the group’s operating business has also been expressed by both senior secured creditors and unsecured creditors, with certain members of both groups offering liquidity financing of around EUR 16 million to Norske Skog AS. Following discussions and considerations of key terms presented for such financing the group is in the process of receiving a commitment letter from certain of its senior secured creditors.

Norske Skog will continue to facilitate concluding stakeholder discussions for the launch of a revised transaction proposal next week.
more at:  http://www.norskeskog.com/Default.aspx?ID=2890&t=2017-08-11T21:35:19+02:00

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