Verso Corp. Emerges from Bankruptcy, De-Levered Capital Structure Positions It for Growth

Verso Corp., Memphis, Tenn., has announced that the company and its subsidiaries have emerged from bankruptcy following a successful financial restructuring and confirmation of its Chapter 11 plan of reorganization by the U.S. Bankruptcy Court for the District of Delaware on June 23, 2016.

“Our emergence from bankruptcy less than six months after our Chapter 11 filings would not have been possible without the support of our lenders, whose willingness to invest in Verso demonstrates their confidence in our prospects for long-term growth and value creation,” said David Paterson, president and CEO for Verso Corp. “We also appreciate the hard work and dedication of our employees, who continued to serve our customers without interruption throughout the restructuring process. Lastly, we thank our customers, vendors and other stakeholders for their loyalty. We believe Verso is poised for sustainable profitability, and we are excited about the opportunities that lie ahead.”

Verso Corp.’s restructuring reduced the company’s debt by $2.4 billion and includes $595 million in exit financing to support ongoing operations and capital investment. The exit financing consists of an asset-based lending facility with borrowing capacity of up to $375 million led by Wells Fargo Bank, National Association, and a $220 million term loan facility with available loan proceeds of $198 million led by Barclays Bank.

“Verso emerges from bankruptcy as a much stronger company with significantly reduced debt and a unified capital structure that position us to fully realize and leverage the benefits of our prior operational improvements, explore opportunities for strategic growth, successfully compete in the global marketplace, and deliver on our corporate mission to create value for all of our stakeholders,” Paterson commented.

As provided in Verso Corp.’s plan of reorganization, all shares of Verso Corp.’s common stock issued prior to the commencement of Verso’s bankruptcy proceeding were cancelled upon emergence, and Verso Corp. has issued new shares of common stock to the holders of its previously outstanding funded debt in return for their allowed claims against the company. There is no majority stockholder, and no single entity owned more than 10 percent of Verso Corp.’s outstanding shares at the time of emergence.

In connection with its emergence, Verso Corp. also received approval from the New York Stock Exchange (NYSE) for Verso Corp.’s Class A common stock to be listed for trading on the NYSE. The Class A common stock began trading on the NYSE on July 18, 2016. The trading symbol for the Class A common stock is “VRS,” which is the same trading symbol used for Verso Corp.’s common stock when it previously was listed on the NYSE.

In accordance with Verso Corp.’s Chapter 11 plan of reorganization, the term of Verso Corp.’s previous board of directors expired upon emergence and a new board of directors provided for in the plan of reorganization is effective immediately. As previously announced, Paterson will serve as chairman of the board and will remain as president and CEO until his replacement is named. The other directors of Verso Corp. are Robert Amen, Alan Carr, Eugene Davis, Jerome Goldman and Jay Shuster. Verso Corp.’s senior management team is unchanged and continues to lead the company.

For more information, visit www.versoco.com.