RUMFORD, Maine — Paper producer NewPage Corp. says it has completed financial restructuring and has emerged from Chapter 11 bankruptcy protection.
As part of its plan, NewPage secured financing led by Goldman Sachs Lending Partners LLC of a $500 million term loan plus $350 million in revolving credit led by J.P. Morgan Stanley Securities LLC, the company said in a news release.
“This is an exciting day for all of us at NewPage,” George F. Martin, president and chief executive officer, stated in the release. “We have successfully completed our restructuring, and we have emerged as a financially sound company. This step helps to solidify our position as the leading North American producer of printing and specialty papers. We look forward to continuing to provide our customers with exceptional service and high-quality products, operating safe and efficient mills and being a responsible community member.”
Jay A. Epstein, senior vice president and chief financial officer for NewPage, said in the release: “Through the reorganization process, we significantly reduced our debt and emerged with a sustainable capital structure. Our exit facility will provide ample liquidity to meet all of our working capital and capital investment needs.”
The company thanked Judge Kevin Gross for successfully shepherding the case through the Chapter 11 process and protecting 6,000 jobs, and to Judge Robert Drain for mediating the economic settlement that paved the way for a consensual Chapter 11 plan.
NewPage is the leading producer of printing and specialty papers in North America with $3.5 billion in net sales for the year ended December 31, 2011. NewPage is headquartered in Miamisburg, Ohio, and owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota and Wisconsin. These mills have a total annual production capacity of approximately 3.5 million tons of paper.