Verso Paper Files for Bankruptcy
Verso Corporation, which employs more than 500 people at its paper mill in Jay, has filed for Chapter 11 bankruptcy.
Falling demand for the company’s products and foreign competition have made it impossible for Verso to satisfy its creditors. There are a lot of them.
Verso owes money to more than 25,000 individuals and businesses, according to the filing in U.S. Bankruptcy Court in Delaware, where the company was incorporated.
The company’s restructuring plan will allow it to eliminate $2.4 billion in debt.
“The restructuring is really focused more on our balance sheet, not on our operations,” says Kathy Rowzie, who oversees communications at Verso. “So the Chapter 11 filings will have virtually no impact on our day-to-day operations.”
Rowzie says Verso has no plans to shut down or sell its Jay mill, or any of its other facilities, as it goes through restructuring.
Two Maine businesses are among the company’s top 30 creditors.
Verso owes Catalyst Paper Operations in Rumford $2.2 million and Bangor-based Hartt Transportation Systems is owed $1.2 million.