The two bondholder committees and the major shareholders have agreed on a split of the equity ownership of Norske Skogindustrier ASA, following the recapitalization transaction that these groups will support. With this development, over 80% of the senior secured noteholders and more than 50% of the unsecured noteholders have now indicated their willingness to support such an adjusted recapitalization proposal.
The relevant boards in the Norske Skog group have resolved to revise the terms of the ongoing consent solicitation in accordance with the split agreed.
Compared to the recapitalization proposal launched on October 11, 2017, the changes made to the split of the equity ownership of Norske Skogindustrier ASA after the recapitalization (before any new money offering) will be as follows (October 11 proposal in parentheses):
a. Secured noteholders: 90.75 % (91.0 %)
b. Unsecured noteholders: 6.75 % (6.3 %)
c. Existing shareholders: 2.50 % (2.7 %)
Christen Sveaas, chairman of Norske Skogindustrier ASA, commented: “We are very pleased that the representatives of the bondholder committees and shareholders have bridged the gap in economic distance, and that a material portion of our largest creditors and shareholders are supportive of the recapitalization proposal. Now, I urge all stakeholders of the Norske Skog group to provide their consents to the recapitalization proposal so that the requisite consent thresholds can be reached. As repeatedly stated, all alternatives to a consensual solution will entail significantly less value for all parties and rather complicated insolvency processes.”