Norske Skog extends consent solicitation deadline for recapitalisation proposal
3 October 2017
The company said that it would continue normal operations "regardless of the outcome of the consent solicitation process".
Norske Skog announced that the consent solicitation deadline for the ongoing recapitalisation proposal was extended from 29 September to 3 October at 17.00 CET. The company said it would use the period prior to the new expiration deadline to continue discussions with various stakeholder groups to try to achieve sufficient support for a consensual recapitalisation solution for the Norske Skog group.
Norske Skog said that the process was challenging, but it would like to allow time to finalise its discussions with the various stakeholders, believing that the extension of the consent deadline would improve the chances of reaching a solution. The board of the company firmly believes that only less beneficial alternatives to a consensual solution exist. Norske Skog said that it had seven profitable business units that would continue normal operations regardless of the outcome of the consent solicitation process.
On 28 September, Norske Skog received response from a group of Senior Secured Bondholders to the recapitalisation proposal from a majority of Senior Unsecured bondholders made public on 27 September. The Senior Secured Bondholders' Ad Hoc Committee, representing about 65% of the Senior Secured Notes due 2019, had explained that it did not support the Unsecured Creditor proposal published on 27 September. In the Committee's opinion, the proposal had no possibility of achieving the requisite consensual support across the Norske Skog's key creditor classes.