Verso Corporation completed another important step toward its emergence from bankruptcy when its Chapter 11 plan of reorganization was confirmed by the U.S.Bankruptcy Court in the District of Delaware.This confirmation, which comes less than five months after Verso and its subsidiaries filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code, clears the way for Verso to emerge from bankruptcy, likely by the end of July.
Verso's restructuring will reduce the company's debt by approximately $2.4 billion upon emergence.Verso expects to emerge from bankruptcy with $595 million in exit financing to support ongoing operations and capital investments.
The exit financing will consist of an asset-based lending facility with borrowing capacity of up to $375million led by Wells Fargo Bank, National Association, and a $220 million term loan facility with available loan proceeds of $198 million led by Barclays Bank PLC.
Verso Corporation is the leading North American producer of printing and specialty papers and pulp.
