Norske Skog units file bankruptcy; court appoints Ottesen as trustee

By Caroline Salls

Pittsburgh, Jan. 5 – Norske Skog AS announced Friday that the Oslo Bankruptcy Court appointed Tom Hugo Ottesen as bankruptcy trustee for Norske Skogindustrier ASA, Norske Treindustrier AS, Norske Skog Holding AS, Lysaker Invest AS and Norske Skog Eiendom AS.

According to a news release, in addition to the bankruptcy filing of Norske Skogindustrier, the boards of directors of Norske Treindustrier, Lysaker Invest, Norske Skog Eiendom and Norske Skog Holding also filed bankruptcy on Dec. 20.

The deadline for claims to the bankruptcy trustee is Jan. 23.

Norske Skog said the group’s operational activities will continue as normal with as little impact as possible from the bankruptcy proceedings.

The non-listed Norske Skog AS will be the new operating parent company of the Norske Skog group, the release said, and will continue the head office function that has been performed by Norske Skogindustrier.

The company said majority senior secured noteholder Oceanwood has started the enforcement process on the senior secured notes collateral in Norske Skog.

As a result, the ownership of Norske Skog AS, the parent company of all operating business units, will thus be transferred to new owners in an auction process.

As previously reported, Oceanwood has entered into a joint venture with Aker in a bid to buy and operate Norske Skog AS, and the joint venture is providing financial support to Norske Skog throughout the auction process.

“The operations of Norske Skog AS are attractive given leading competitive positions in their respective markets,” Norske Skog AS chairman of the board Sven Ombudstvedt said in the release.

“We are thus very pleased to observe both strong financial and industrial interest in the operations of Norske Skog.”

Norske Skog president and chief executive officer Lars P.S. Sperre said in the release, “Our main task going forward is to facilitate the auction process and to ensure that Norske Skog AS gets a new strong owner.

“Meanwhile, we will continue to develop the operating businesses and look forward to a renewed strategic focus with new owners.”

Norske Skogindustrier is an Oslo-based paper and pulp company.

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