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Verso Chapter 11 Bankruptcy Plan Effective

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Verso filed with the U.S. Bankruptcy Court a seventh Supplement to its First Modified Third Amended Joint Plan of Reorganization. The Supplement contains the following documents: Exhibit M: ABL agreement and Exhibit O: term loan agreement. The Company’s First Modified Third Amended Joint Plan of Reorganization subsequently became effective, and Verso emerged from Chapter 11 protection. The Court confirmed the Plan on June 23, 2016. Verso’s restructuring will reduce the Company’s debt by approximately $2.4 billion, and the Company anticipates emerging with $595 million in exit financing to support ongoing operations and capital investments. The exit financing will consist of an asset-based lending facility with borrowing capacity of up to $375 million led by Wells Fargo Bank, and a $220 million term loan facility with available loan proceeds of $198 million led by Barclays Bank.

Verso’s president and C.E.O., David J. Paterson, comments, “Verso emerges from bankruptcy as a much stronger company with significantly reduced debt and a unified capital structure that position us to fully realize and leverage the benefits of our prior operational improvements, explore opportunities for strategic growth, successfully compete in the global marketplace, and deliver on our corporate mission to create value for all of our stakeholders.”

Paterson will transition to the role of chairman of the board. Verso has issued new shares of common stock to holders of its previously-outstanding funded debt in return for their allowed claims against the Company. In connection with its emergence from bankruptcy, Verso also received NYSE approval for Verso’s Class A common stock to be listed for trading under the symbol “VRS.”

This paper and pulp producer filed for Chapter 11 protection on January 26, 2016, listing $878 million in pre-petition assets. Read more VRS bankruptcy news.

The post Verso Chapter 11 Bankruptcy Plan Effective appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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