City Times Staff
Verso Corp., the owner of paper mills in Stevens Point and Wisconsin Rapids will file for Chapter 11 bankruptcy protection on Tuesday to address the company’s $2.4 billion debt.
A press release announcing the bankruptcy was issued early this morning by Verso Corporation.
The decision was made by the board of directors of Verso in efforts to “strengthen the company’s balance sheet”, and to position the company for “long-term success”.
According to the press release, the move will have virtually no impact on the day-to-day operations of the company.
“While filing for Chapter 11 protection was a difficult decision, we are pleased that we enter this process with strong creditor support,” the release said in part. “We have worked together with a broad spectrum of financial creditors to develop a restructuring plan to eliminate $2.4 billion of our outstanding debt and to exit the Chapter 11 process in a short time-frame.”
Verso will be taking a debtor-in-possession package that will total up to $600 million, which will help the company in operational flexibility. Verso Corp. will be seeking immediate assistance from the bankruptcy court which will grant the authority to pay pre-petition wages, salaries and benefits.
“Verso intends to operate our business as usual with an unwavering focus on running our facilities safely and efficiently, delivering the high quality products and services our customers have come to expect from us, maintaining valued relationships with our suppliers, protecting the environment, and being a good neighbor in the communities where we operate,” the release reads.
Check back for updates.