Verso Corporation announced that the bankruptcy court presiding over Verso's Chapter 11 bankruptcy proceeding yesterday authorized Verso to reject a specialty paper supply contract with Expera Specialty Solutions.
The contract with Expera, which was an element of the sale by International Paper Company of its industrial papers business to Thilmany, LLC in 2005, had a 12-year term expiring in 2017.
The contract required Verso, as the assignee of International Paper, to manufacture specialty paper on the A5 paper machine at its Androscoggin mill in Jay, Maine, for sale to Expera, as the successor to Thilmany, at a price essentially equivalent to Verso's cost of producing the paper. By virtue of the bankruptcy court's order, the Expera contract now is rejected, which is essentially a termination of the contract that is authorized by federal bankruptcy law.
Moving forward from the rejection of the Expera contract, Verso intends to continue producing for its own account a portfolio of proven lightweight machine glazed papers for release liner, oil and grease resistant and flexible packaging applications. Verso intends to begin accepting and fulfilling customers' orders for these products starting today.
Verso Corporation is the leading North American producer of printing and specialty papers and pulp.
