According to the U.S. Bankruptcy Court docket, Verso filed a Joint Chapter 11 Plan of Reorganization and related Disclosure Statement, which notes, “Under the Plan, 100% of the equity of Reorganized Verso will be issued to the Debtors’ existing creditors (subject to dilution by equity issued to the Reorganized Debtors’ employees under the Management Incentive Plan and the Plan Warrants).”
The Disclosure Statement further notes, “Specifically, holders of Allowed Verso First Lien Claims (i.e., Claims arising under the Verso 2012 First Lien Notes, Verso 2015 First Lien Notes, and the Verso Cash Flow Credit Agreement), will receive 50% of Reorganized Verso’s equity (plus warrants to purchase additional equity), holders of NewPage Roll-Up DIP Claims and NewPage Term Loan Claims will receive 47% of Reorganized Verso’s equity, holders of Verso Senior Debt Claims (i.e., Claims arising under the Verso 1.5 Lien Notes, the Verso Second Lien Notes, and Verso Old Second Lien Notes) will receive 2.85% of Reorganized Verso’s equity, and holders of Verso Subordinated Debt Claims will receive the remaining 0.15% of Reorganized Verso’s equity.”
The disclosure Statement continues, “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 benefits of the NewPage acquisition, and unify the Verso and NewPage capital structures.”
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