Norske Skog has entered into a loan agreement for a Euro 16 million liquidity facility with holders of a majority of the SSN (Euro 290 million, 2019) to support the group's operating business throughout the recapitalization process.
The newly elected Board of Directors of Norske Skog has invited key stakeholders in the recapitalization process for discussions this week. The Board will thereafter continue the process to develop a recapitalization proposal which will address the group's financial situation.
"We are satisfied that the key stakeholders are willing to support our competitive business operations with a Euro 16 million liquidity facility. The liquidity facility and cash flow from operations will secure our operating business through the recapitalization process. We will now direct all of our efforts to develop a long-term sustainable recapitalization solution for the group," said Lars P. S. Sperre, President and CEO of Norske Skog.
In order to ensure information parity among stakeholders ahead of the forthcoming discussions between the newly elected board and bond holder groups, it is disclosed that the most recent estimate for full year 2017 gross operating earnings is around NOK 700 million ($91 million).
The downward adjustment from earlier outlook statements is mainly due to adverse currency effects combined with higher energy cost and increased exports to lower-margin Asian markets. The negative currency effects alone represent a negative adjustment in excess of NOK 50 million ($65 million).
Norske Skog is a global leader in production of newsprint and magazine paper. The company has 9 paper mills around the world.
