VOICE Staff
NewPage, owners of mills in Wisconsin Rapids and Biron, filed for bankruptcy today, according to a press release from the company.
According to a report from Bloomberg, the company listed more than $1 billion in assets and at least $1 billion in debt in the Chapter 11 filing, which allows a company to restructure its debt and emerge from bankruptcy.
Based in Miamisburg, Ohio, NewPage had net sales of $3.6 billion in 2010.
The company expects to continue normal operations, according to the release. To continue operations, the company has $600 million in financing from J.P. Morgan.
“We strongly believe that the court-supervised restructuring we began today is the most effective means of strengthening our financial position and enhancing our standing as the leading producer of printing and specialty paper in North America,” said George Martin, president and chief executive officer for NewPage, in the release. “We expect to continue to provide our customers with the exceptional service and high-quality products they have come to expect. We recognize customers have choices, and NewPage needs to continue to earn their trust and loyalty every day. We expect to continue to run safe and efficient operations, be candid with all of our stakeholders and act as a responsible community member both during and after our financial restructuring.”
The company could be stronger after restructuring, said Jay Epstein, senior vice presidents and chief financial officer.
“A successful restructuring will allow NewPage to emerge as a financially stronger company that is even better positioned to compete and succeed in this dynamic industry environment,” he said. “To this end, we fully expect to work productively with our lenders and other creditors to develop our Chapter 11 plan as efficiently as possible.”
The company’s Consolidated Water Power Company subsidiary is not part of the filing.
NewPage owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin and Nova Scotia, Canada. These mills have a total annual production capacity of approximately 4.1 million tons of paper, including approximately 2.9 million tons of coated paper, approximately 1.0 million tons of uncoated paper and approximately 200,000 tons of specialty paper.
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