Feb 02, 2009. /Lesprom.com/. Peterson, the Norwegian paper industry group, is facing an acute crisis and is in talks with its creditors about emergency financial support. The group needs NOK 150 million ($21.4 million) to survive this year, Lesprom Network said according to the article on the Papernet.
The Norwegian Peterson Group, with head office and largest production facility in Moss, southern Norway, is facing an acute crisis. According to the Dagens Næringsliv business daily, discussions are under way between Peterson’s management and the company’s creditors regarding emergency financial support. It has been reported that an immediate loan of NOK 50 million ($7 million) has been approved by the Norwegian bank DnB Nor, so that Peterson could pay its suppliers.
According to Dagens Næringsliv, DnB Nor is holding a total loan package to the Peterson Group of about NOK 540 million ($77 million).
Peterson’s CEO, Per C Kløvstad, confirmed to Norwegian media that the company is in a difficult situation, but that it has a good order backlog.
“It is not easy to look ahead. Owners, creditors, company management and the employees must unite to carry the Peterson Group through this situation,” says Kløvstad.
It is reported that discussions are being held between management and the trade unions regarding shortening the workweek from five to four days, or a pay cut of ten percent.
“We fear a bankruptcy,” says Willy Josefsen, union representative on Peterson’s Board of Directors.
The Peterson Group underwent a reconstruction two years ago, with new owners, new management and new financing. At that time, operations were reorganized, the number of employees reduced and converting plants were acquired, including units in Norrköping and Bäckefors, Sweden. The Peterson Group has a kraftliner plant in Moss and a testliner plant in Ranheim, outside Trondheim. There are cartonboard and corrugated board plants in Norway, Denmark, Finland and Sweden.