MIAMISBURG, Ohio - NewPage Corp., owner of the paper mill in Escanaba, is back on track with its finances as it emerges from bankruptcy, company officials announced Thursday.
NewPage, headquartered in Ohio, successfully completed its financial restructuring and has officially emerged from Chapter 11 bankruptcy protection, confirmed the U.S. Bankruptcy Court in Wilmington, Del., earlier this month.
In conjunction with the plan, NewPage closed on its exit financing, consisting of a $500 million term loan led by Goldman Sachs Lending Partners LLC and a $350 million revolving credit loan led by J.P. Morgan Securities LLC.
"This is an exciting day for all of us at NewPage," said George F. Martin, president and chief executive officer. "We have successfully completed our restructuring and we have emerged as a financially-sound company. This step helps to solidify our position as the leading North American producer of printing and specialty papers."
Martin added, "We look forward to continuing to provide our customers with exceptional service and high-quality products, operating safe and efficient mills and being a responsible community member."
The CEO thanked the company's customers and suppliers for their support during the process.
"I would also like to extend my gratitude to our employees for their hard work and tireless dedication throughout the reorganization and the challenging period leading up to it," Martin added.
According to the company's website, approximately 1,050 people are employed at the Escanaba mill which has the capacity to produce about 780,000 tons of paper per year. The mill produces specialty papers, coated papers, and uncoated papers used for magazines, catalogs, annual reports, textbooks, supplements and product brochures.
The mill is owned by Escanaba Paper Company which is a subsidiary of NewPage Corp., according to website information. NewPage owns paper mills in Michigan, Wisconsin, Minnesota, Ohio, Maine, Maryland, and Kentucky.
Jay A. Epstein, senior vice president and chief financial officer for NewPage said through the recent reorganization process, the company significantly reduced its debt and emerged with a sustainable capital structure.
"Our exit facility will provide ample liquidity to meet all of our working capital and capital investment needs," Epstein said.
NewPage officials thanked Judge Kevin Gross for successfully shepherding the case through the Chapter 11 process and protecting 6,000 jobs, and Judge Robert Drain for mediating the economic settlement that paved the way for a consensual Chapter 11 plan.