NewPage Corporation (NewPage) announced that it has reached an agreement in principle with all of its major creditor groups concerning the terms of its chapter 11 plan. A brief summary of the agreement in principle has been posted to the KCC restructuring website, www.kccllc.net/NewPage.
"This is a very important step for NewPage, and assuming satisfaction of certain conditions, this agreement should allow us to emerge from chapter 11 in the near term," said George F. Martin, President and CEO of NewPage.
The agreement was reached as part of court ordered mediation conducted by the court-appointed mediator, Bankruptcy Judge Robert D. Drain. At the request of certain parties participating in the mediation, the mediator did not provide any of the term sheets proposed by the parties to the mediation (or any of their material terms) to certain other parties participating in the mediation. Rather, the mediator served as an intermediary, facilitating discussion among the parties and encouraging the parties to make concessions in an effort to reach agreement upon a consensual chapter 11 plan.
NewPage wishes to acknowledge the outstanding result achieved by Judge Drain in facilitating a consensual chapter 11 plan, and wishes to thank all the mediation participants for their efforts throughout this process.
NewPage also announced that it contemplates signing in the near term an exit financing facility in the form of a $500 million secured term debt facility and $400 million asset-based revolving credit facility.