Verso filed with the U.S. Bankruptcy Court Third Amended Joint Plan of Reorganization and related Disclosure Statement. According to documents filed with the Court, “The Plan will allow the Debtors to strengthen their balance sheet by equitizing over $2.4 billion in debt and will allow the Debtors to complete the integration of Verso and NewPage, realize the expected synergy benefits of Verso’s NewPage acquisition, and unify the Verso and NewPage capital structures. The Plan, if confirmed, would also ensure that the Debtors continue to operate as a going concern, and would preserve the jobs of the Debtors’ employees….On the Effective Date, except to the extent that the Holder of a Verso DIP ABL Claim agrees to less favorable treatment, in exchange for the full and complete settlement, release, and discharge of such Claim, each Holder of a Verso DIP ABL Claim shall receive an amount in Cash (except as otherwise expressly provided in Article 2.3 of the Plan with respect to Claims in respect of the face amount of any Verso DIP ABL Undrawn Letter of Credit) equal to the Allowed amount of such Claim and all commitments under the Verso DIP ABL Agreement shall terminate….On the Effective Date, except to the extent that the Holder of a NewPage DIP ABL Claim agrees to less favorable treatment, in exchange for the full and complete settlement, release, and discharge of such Claim, each Holder of a NewPage DIP ABL Claim shall receive an amount in Cash (except as otherwise expressly provided in this Article 2.4 with respect to Claims in respect of the face amount of any NewPage DIP ABL Undrawn Letter of Credit) equal to the Allowed amount of such Claim and all commitments under the NewPage DIP ABL Agreement shall terminate.” The Court scheduled a June 23, 2016 hearing to consider Plan confirmation. Read more Verso bankruptcy news.
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