Jan 26, 2009. /Lesprom.com/. Munksjö is heavily burdened by debt amounting to about SEK 4 billion ($500 million) as well as weakening demand and declining prices for the company’s products, informed Lesprom Network according to the Papernet. A rescue plan will be discussed at a Board meeting. However, the company denied information that banks had suspended credit terms. Munksjö is no longer able to meet the terms of its loans, according to Dagens Industri business daily. The company is carrying about SEK 4 billion ($500 million) in debt as well as an additional shareholder loan of slightly more than SEK 1 billion ($125 million). Accordingly, the company’s future is now in the hands of the banks. “Our debt is what it is and, naturally, we are trying to maneuver to meet commitments, but clearly with this exposed market situation, the debt is even heavier to bear relative to our earnings,” says Munksjö’s President, Jan Åström.