Norske Skog has reached an agreement with its bank syndicate resetting covenants related to Euro 140 million revolving credit facility

Jan 02, 2012. /Lesprom Network/. Norske Skog has reached an agreement with its bank syndicate resetting covenants related to the Euro 140 million revolving credit facility (RCF) established in May this year. The new terms give additional headroom in 2012, as the company said in a press release received by Lesprom Network. Norske Skog has ended discussions with a counterparty to establish a securitization of accounts receivables in Europe without reaching an agreement. Norske Skog has signed an agreement with Bratsberg Gruppen and Conceptor, local real estate developers, concluding vendor financing related to the disposal of Klosterøya, the site of the former Union mill in Norway. Pending on buyer financing this will bring cash proceeds amounting to NOK 100 million ($16.7 million) in February 2012. With this agreement around NOK 250 million ($41.8 million) of non-core disposals in second half of 2011 have been settled as guided. The previously announced sales process for conversion of Norske Skog Parenco continues. Norske Skog is evaluating alternative use of the site. The production of publication paper will be discontinued at the latest in 2013.