Verso disclosure statement approved; plan confirmation hearing June 23

By Caroline Salls

Pittsburgh, May 9 – Verso Corp. received court approval of the disclosure statement for its plan of reorganization, according to an order filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for June 23.

Treatment of creditors under the proposed plan would include the following:

• Verso and NewPage ABL debtor-in-possession loans will be refinanced through an exit ABL loan;

• NewPage term DIP loan claims will be paid in full in cash. NewPage roll-up DIP term loan claims will be treated as class N3 claim. As class N3 creditors, they will receive a portion of the NewPage plan consideration equal to the allowed amount of the holder’s claim on the plan confirmation date;

• Administrative claims, priority tax claims and other-priority claims will be paid in full in cash;

• Other secured claims will be reinstated, holders will be paid in full in cash or receive the collateral securing the claims;

• Holders of Verso first-lien claims will receive a share of 50% of the equity consideration and 100% of new seven-year warrants to purchase 5% of the reorganized company’s equity with a strike price of $1.04 billion;

• Holders of Verso senior debt claims will receive a share of 2.85% of the equity consideration;

• Holders of Verso subordinated debt claims will receive a share of 0.15% of the equity consideration;

• Holders of general unsecured claims will receive a share of $3 million in cash;

• Verso intercompany claims will be either reinstated or cancelled, extinguished and discharged, at the option of the debtors;

• Holders of the equity interests in Verso subsidiaries will be either reinstated, transferred to reorganized Verso or canceled, extinguished and discharged;

• Holders of equity interests in Verso Corp. will receive no distribution; and

• Holders of NewPage first-lien claims will receive a share of the NewPage plan consideration remaining after distribution to holders of the roll-up DIP term loan claims.

Verso, a Memphis-based producer of printing and specialty papers and pulp, filed for bankruptcy on Jan. 26. The Chapter 11 case number is 16-10163.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.