(Adds details, CFO comment)
* Lists estimated assets and liabilities of more than $1 bln
* Has up to $600 mln DIP financing commitment led by JP Morgan
* Says looking for potential buyers for Canadian subsidiary
Sept 7 (Reuters) - Specialty paper producer NewPage Corp filed for Chapter 11 bankruptcy protection and listed estimated assets and liabilities of more than $1 billion.
The company, which owns paper mills in U.S. and Canada, said it has obtained a commitment led by JP Morgan for up to $600 million in debtor-in-possession (DIP) financing.
The DIP financing includes a term loan facility of $250 million and a revolving credit facility of up to $350 million.
The Miamisburg, Ohio-based company said it was talking to potential buyers for its Canadian subsidiary NewPage Port Hawkesbury Corp, which has brought proceedings before the Supreme Court of Nova Scotia.
It had announced on Aug. 22 that it would take "downtime" at its Canadian subsidiary as market and economic conditions turned the mill non-profitable for more than a year.
NewPage said it expects to continue operating its U.S. businesses as usual and was working closely with creditors and other stakeholders to formulate a Chapter 11 plan.
"We are confident that the DIP financing we have secured will allow us to maintain continuity in our U.S. businesses as we complete this process," chief financial officer Jay Epstein said.
Companies usually seek to slash debt levels and reorganize their operations through Chapter 11 filings.
The case is Newpage Corp, Case No. 11-12804, U.S. Bankruptcy Court, District of Delaware. (Reporting by Tanya Agrawal and Sakthi Prasad in Bangalore; Editing by Jon Loades-Carter and Joyjeet Das)
Niciun comentariu:
Trimiteți un comentariu