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NewPage files Chapter 11 restructuring plan
REGION -- NewPage Corp. on August 13 filed its long-awaited reorganization plan, which would hand control of the bankrupt paper company to senior noteholders while offering roughly $13.8 million to settle junior creditors' claims over a 2007 leveraged buyout.
The plan, however, is still a work in progress. NewPage has also requested additional time to submit the disclosure statement detailing the plan as it attempts to bring warring creditor factions on board with the proposal, according to documents filed in Delaware bankruptcy court.
According to a July 3 news release, NewPage officials said they planned to submit a plan that was agreeable to all parties involved. That plan was what the company filed on August 14.
Among its holdings, the company operates the Rumford paper mill, which employs approximately 900 people.
"The filing of our plan of reorganization is an important and positive step forward to a successful completion of our financial reorganization," said George F. Martin, president and chief executive officer, in a statement. "Discussions with and among our major creditor groups regarding the plan are ongoing. We are hopeful that these discussions will lead to broad support for our plan."
NewPage filed for bankruptcy in September 2011. It was purchased by private equity investment firm Cerberus Capital Management a few years ago.
According to the statement, NewPage is the leading producer of printing and specialty papers in North America with $3.5 billion in net sales for the year ending Dec 31, 2011.
NewPage is headquartered in Miamisburg, Ohio. In addition to the plant in Rumford, the company owns paper mills in Kentucky, Maryland, Michigan, Minnesota and Wisconsin, which can produce approximately 3.5 million tons of paper annually.