Similar explanations were given when Verso officials announced in August the Wickliffe plant would be idled in the third quarter indefinitely, forcing the majority of its workforce to be laid off.
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Both of those mills are specifically mentioned as possibly up for sale. It blamed sales declines on “an increase in offshore imports and a decline in USA demand for coated papers”. “Today’s announcement will not affect your day-to-day work, your paycheck or your benefits”, Paterson told employees at the Jay mill.
That position has caused the company to look at restructuring options, either out of court or through a Chapter 11 bankruptcy proceeding.
The paper maker, in announcing a third quarter net loss of $11 million, said it is exploring opportunities to raise funds by selling certain mills.
Even though sales were up, the company took a $111 million hit for the quarter.
The Duluth mill was purchased by Verso in January as part of the NewPage acquisition.
In September, the NY Stock Exchange delisted Verso’s stock because of a precipitous fall in the value of its stock.
Demand for North American coated paper declined by 4.7 percent in the first two quarters of 2015, following declines of 3.4 percent and 4.3 percent in 2014 and 2013, respectively. The association, which is planning a day-long summit Tuesday to discuss industry challenges, said it’s a critical time for paper companies, but that “in spite of the headlines, is still one of the state’s most important, directly employing nearly 5,000 Mainers in high-paying jobs”. Mill leaders recognize its their responsibility to improve operating efficiencies, make capital investments and innovate products to meet customers’ needs. “We’ve come a long way quickly, and I’m asking for your help to keep our momentum going”.
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Company officials are looking at potential plans for restructuring debt and selling assets.
