Verso files for Ch 11; speedy exit expected after most debt holders agree on restructuring plan, DIP finance
OAKLAND, CA, Jan. 29, 2016 (PPI Pulp & Paper Week) -Brought down by a crushing debt burden, Verso filed a petition to reorganize its financial structure under Ch 11 bankruptcy protection. The move on Jan. 26 was widely expected and seen as bowing to the inevitable.
The following day after filing, the firm announced it had finalized a restructuring support agreement (RSA), with creditors holding "at least a majority" of its funded debt consenting to support and vote for its plan of reorganization.
The plan calls for the elimination of about $2.4 billion in pre-bankruptcy debt. In return, the debt holders will ...