Norske Skog ends refinancing
discussions with key investors

Photo by Norske Skog
09 Feb 2017 − 

Company is seeking to improve its position to diversify its business

Refinancing discussions held by Norske Skog and key investors were ended without results. In its report on 2016 financial results the company said that it had discussed a refinancing proposal with key equity and bondholders this year. The proposed transaction would have equitized all unsecured debt and enlarged and extended the senior secured note (SSN). Norske Skog explained that the proposal followed consistent investor feedback through last autumn for the desirability of the group to reduce its debt and lower interest costs.

Despite significant efforts that were made to construct a balanced proposal acceptable for all investors within the realms of the possible, specific investor demands were beyond that scope and discussions were ended.

Norske Skog said that a deleveraged and recapitalized group would be in a better position to diversify its business model. Identified growth projects include biogas, tissue paper and wood pellets in addition to green energy savings and production of fibre based alternatives to other materials. A diversified Norske Skog with a strong balance sheet would also be an attractive consolidation partner for publication paper in Europe, the company explained.

EUWID Pulp and Paper keeps busy professionals up-to-date on the latest news from European pulp and paper markets.

Test EUWID Pulp and Paper free of charge and without any obligation by clicking here.

Tags of this news:

previous − PCA's DeRidder containerboard mill hit by explosion

Price negotiations kick off on the kraftliner market in Germany  − next