Verso Successfully Emerges from Bankruptcy
Highly De-levered Capital Structure Positions Company to Successfully Compete and Profitably Grow
Verso Corporation and its subsidiaries have emerged from bankruptcy following a successful financial restructuring and confirmation of its Chapter 11 plan of reorganization by the U.S. Bankruptcy Court for the District of Delaware on June 23, 2016.
Verso’s emergence less than six months after our Chapter 11 filings would not have been possible without the support of our lenders, whose willingness to invest in our company demonstrates their confidence in Verso’s prospects for long-term growth and value creation. We also appreciate the hard work and dedication of our employees, who continued to serve our customers without interruption throughout the restructuring process, and we thank our customers, vendors and other stakeholders for their loyalty.
Verso emerged from bankruptcy as a much stronger company with significantly reduced debt and a unified capital structure that position us to fully realize and leverage the benefits of our prior operational improvements, explore opportunities for strategic growth, successfully compete in the global marketplace, and deliver on our corporate mission to create value for all of our stakeholders.
Verso’s restructuring reduced the company’s debt by $2.4 billion and includes $595 million in exit financing to support ongoing operations and capital investment. The exit financing consists of an asset-based lending facility with borrowing capacity of up to $375 million led by Wells Fargo Bank, National Association, and a $220 million term loan facility with available loan proceeds of $198 million led by Barclays Bank PLC.
As provided in Verso’s plan of reorganization, all shares of Verso’s common stock issued prior to the commencement of Verso’s bankruptcy proceeding were cancelled upon emergence, and Verso has issued new shares of common stock to the holders of its previously outstanding funded debt in return for their allowed claims against the company. There is no majority stockholder, and no single entity owned more than 10 percent of Verso’s outstanding shares at the time of emergence.
In connection with its emergence, Verso also received approval from the New York Stock Exchange for Verso’s Class A common stock to be listed for trading on the NYSE. The Class A common stock began trading on the NYSE on July 18, 2016. The trading symbol for the Class A common stock is “VRS,” which is the same trading symbol used for Verso’s common stock when it previously was listed on the NYSE.
We believe Verso is poised for sustainable profitability, and we are excited about the opportunities that lie ahead.
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