Norske Skog: BOD to launch new restructuring proposal, SSN holders issue acceleration notice

13 Sep 2017 − 

Publication paper company Norske Skog is working to launch a new restructuring proposal on 18 September, but 2019 SSN holders have issued an acceleration notice, declaring immediate maturity of all debt under the SSN.

Yesterday morning, the newly appointed board of directors (BOD) of Norway's newsprint and magazine paper group Norske Skog announced its intention to launch a new recapitalisation proposal on 18 September. In the regulatory announcement on 12 September, the BOD of Norske Skog said it was working to provide a robust industrial and financial platform for the future development of the group through the new proposal that is based on the company's 2017 gross operating estimate of NOK700m.

However, the holders of senior secured notes (SSN) due 2019 issued by the company's operating subsidiary Norske Skog AS have issued an acceleration notice in the late afternoon, declaring all monetary obligations under the SSN "due and payable immediately".

According to Norway's busines daily E24, 2019 SSN holders are now in control of the group's seven factories in Norway and abroad, thus leaving the listed company Norske Skog ASA without the manufacturing base.

Trading of Norske Skog shares had been suspended on the Oslo stock exchange yesterday afternoon but resumed again this morning.

This is an excerpt from our latest coverage on Norske Skog. EUWID Pulp and Paper Premium subscribers have online access to the entire article on the restructuring efforts at Norske Skog at our website. Subscribers to our print edition can read the article in EUWID Pulp and Paper issue 38/2017.

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