Indebted Norske Skog (Norwegian Forest) are offered refinancing
Norske Skog has received two proposals for refinancing. Both entails that the existing shareholders will be left with a fraction of the company.
In the two proposals for refinancing, the creditors take over either 75 or 85 percent of the company, while today’s shareholders can be left with as little as 5 percent, E24 writes.
– The reason for refinancing is to achieve a sustainable balance in the company that will create a solid platform for development of the company, says Norske Skog’s chairman Henrik Christensen in a stock exchange announcement.
Heavily indebted
Former Norwegian PM, Jens Stoltenberg, visiting Norske skog. Photo: Norske Skog
Together with the update of the refinancing plans in the company, Norske Skog has presented preliminary quarterly figures. At the end of the second quarter, the company had a negative equity of NOK 567 million, reflecting losses during the period. Gross earnings rose to NOK 190 million kroner in the second quarter, from 158 million in the first quarter. Revenue increased to NOK 2.85 billion in the second quarter, up from NOK 2.69 billion in the first quarter, writes E24.
Norske Skog has long been heavily affected by a falling newsprint market and is also heavily indebted after many acquisitions. In May, the company had an interest-bearing debt of NOK 6.4 billion.
© NTB Scanpix / Norway Today
