Paper manufacturer Verso Corp. won final court approval of financing designed to ease an effort to eliminate $2.4 billion in debt under chapter 11 protection the Wall Street Journal reported today. Loans designed to support both Verso and the former rival it acquired last year, NewPage, provide money for day-to-day operations and money to refinance existing loans attached to the company. Early in its case, Verso, which filed for bankruptcy protection on Jan. 26, won interim approval on financing that addressed its immediate liquidity needs. Bankruptcy Judge Kevin Gross indicated at a hearing yesterday that he would sign off on the financing package once final documents are prepared. A turn to online channels for publishing and catalogs has hurt Verso’s sales of coated paper, pushing the company into talks with senior creditors about reshaping its balance sheet for a tougher business climate.
