PORTLAND, Maine — Jay mill owner Verso Corp. has received court approval to borrow up to $675 million to continue operating as it restructures its debt through a Chapter 11 bankruptcy.
A bankruptcy judge in Delaware authorized the two financing packages Thursday for the company that last year bought its larger competitor NewPage.
The two financing packages relate to the two sides of the business — the former NewPage assets and the former Verso Paper Corp. assets. The joined company now seeking to restructure through bankruptcy operates as Verso Corp.
Verso CEO David Paterson issued a statement Thursday that “approval of these first day motions provides confidence that Verso has the ability to continue operating our business as usual throughout the restructuring process.”
To approve the terms of the loan, the court had to determine Verso could not find more favorable financing from other sources and that the cash is needed to keep the business in operation.
The company said the financing package will allow Verso to continue to pay its vendors and employees, including contributions to certain retirement plans.
The Jay mill, which laid off about 300 employees late last year, employs about 560 people in Maine.