Paper producer NewPage Corp. filed for Chapter 11 bankruptcy protection on September 7 to ease its debt restructuring.
The Miamisburg, Ohio-based company said in a statement that it expects to “continue to operate its US businesses as usual throughout the process.” The paper company has obtained a commitment of up to $600 million from banks led by JP Morgan Chase & Co. to ensure it has adequate liquidity through the restructuring.
Its Canadian subsidiary, NewPage Port Hawkesbury Corp., is in discussions with potential buyers to sell a Nova Scotia mill. It said in a statement that market and economic conditions “had prevented it from profitably operating the mill for more than a year.”
The company also launched a dedicated website on September 7 with information about the Chapter 11 proceedings.
NewPage spokesperson Amber Best said the company “made this decision [to enter Chapter 11 bankruptcy] to best position it for the long term.” She said the company has no timeline for emerging from bankruptcy protection.
The Wall Street Journal reported last month that NewPage was carrying more than $3 billion in debt and was in talks with JP Morgan Chase & Co. and Wells Fargo & Co. about financing.
The company’s portfolio includes products used for direct mail, inserts, coupons, catalogs, commercial printing and corporate collateral. It owns mills in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin and Nova Scotia with an annual production capacity of about 4.1 million tons of paper. NewPage reported $3.6 billion in net sales in 2010.
