The group's noteholders have now time until 25 October to give their formal consent to the adjusted proposal.
Norske Skog group announced that its board of directors and management have brokered a consensual solution between the Unsecured Noteholders' Committee, the Secured Noteholders' Committee and major shareholders on a split of equity ownership in Norske Skogindustrier ASA, following the recapitalization transaction.
Under the terms of the consensual agreement, unsecured creditors will see an increase of 0.45% in equity ownership to 6.75% when compared to the recapitalisation proposal launched on 11 October. Secured noteholders and existing shareholders will hold 90.75% and 2.5%, respectively, of the equity in Norske Skogindustrier, 0.25% and 0.2% less than under the 11 October-proposal.
"With this development, over 80% of the senior secured noteholders and more than 50% of the unsecured noteholders have now indicated their willingness to support such an adjusted recapitalization proposal," the company announced.
According to Norske Skog, the terms of the ongoing consent solicitation, issued on 11 October, will be revised in accordance with the split agreed and the consent solicitation deadline is extended until 25 October.
Last Friday, a major unsecured creditor rejected Norske Skog's recapitalisation proposal as unfair and urged the company's board to revise the proposal terms in order to get the necessary support from its side.
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