After two months of discussions, Verso has declined the opportunity to buy up the assets of beleaguered papermaking competitor NewPage.
According to reports, the deal that was being considered would have seen Verso pay all of NewPage’s “debtor-in-possession” financing, and included more than $1 billion in new first-lien notes, $150 million in common stock and $200 million in sorely-needed cash.
But, “After careful analysis, we believe it is in the best interests of our company and its stakeholders to focus on the many other opportunities for Verso, including internal growth projects and other potential strategic alternatives,” said Verso President and CEO David Paterson in a statement.
This followed NewPage’s announcement last month that it’s filed a joint Chapter 11 plan with the U.S. Bankruptcy Court for the District of Delaware.
