JAY, Maine - Verso Paper is preparing to declare bankruptcy, according to stories by Bloomberg and The Associated Press. The reports say the impending filing comes as the company nears the end of a grace period on two missed interest payments.
Verso's mill in Jay employs more than 700 workers
Both Bloomberg and the Associated Press credit sources close to the company for the information on the impending bankruptcy filing.
According to the reports, Verso missed recent payments to two sets of creditors.
As part of the any bankruptcy filing, the company is reportedly trying to get its creditors to sign off on a deal that would convert most of the company's $2.8 billion in debt to equity.
According to Bloomberg and the AP, the bankruptcy deal also calls for a full merger with New Page Holdings, the paper company Verso acquired in 2015.
Equity from the combined firm would then be used to pay off the bondholders that own Verso's debt and the lenders that control New Page's liabilities.
Kathi Rowzie, a Verso spokesperson, did not return a call by airtime, seeking comment on the impending bankruptcy filing.
