Walsum Papier insolvency decision postponed to October

Thursday, Aug 27, 2015

LWC paper machine PM 10 at the former Norske Skog site in Walsum continues production until further notice.

The opening of regular insolvency proceedings on the Walsum Papier magazine paper mill in Germany has been postponed to the start of October. According to information from the administrators' office, the payments of insolvency benefits covered by the German state could have been extended for another month until the end of September.

Meanwhile, operations at the 205,000 tpy LWC paper machine PM 10 are running to capacity as the mill's customers continue placing orders with the company, despite it being in preliminary administration. However, Walsum Papier could not give any supply assurances for the long term, the spokesperson for the administrators' office explained.

Norske Skog Walsum filed for insolvency in June and changed its name into Walsum Papier. The opening of regular insolvency proceeding was originally scheduled for 1 September. The extension period has reportedly worked in favour of the administrators by creating additional space to negotiate with interested parties.

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