Verso Corp. Files for Chapter 11 Bankruptcy Protection Due to Weak Demand, Debt Load
Paper products supplier Verso Corp. announced in a note to customers that it has filed for Chapter 11 bankruptcy protection in the bankruptcy court for the district of Delaware in order to facilitate a debt restructuring aimed at strengthening its balance sheet. The company said the move would have no impact on its day-to-day operations.
Verso Corp. is a victim of a market that has witnessed violent shifts in demand, particularly the plummeting need for coated paper products. The firm has made strides to right-size its supply in accordance with the demand, but in recent months the market for coated papers has been in a free fall. Accelerated demand declines have complemented a major increase in foreign imports as the U.S. dollar has grown stronger relative to foreign currencies.