The announcement is no surprise to Wall Street, where Verso's bonds have been trading at pennies on the dollar in anticipation of a Chapter 11 bankruptcy reorganization or other drastic measures.
Here's the text of the message emailed to Verso customers this morning by Michael A. Weinhold, Verso's Senior Vice President of Sales, Marketing & Product Development:
Dear Valued Customer,
Verso is currently facing a confluence of external factors that negatively affect our liquidity and cash flows, including impending financial obligations, an accelerated and unprecedented decline in demand for our coated paper products, and a significant increase in foreign imports resulting from a strong U.S. dollar relative to foreign currencies.
As a result of our cash flow and liquidity concerns, we have begun evaluating potential restructuring alternatives. Verso has engaged PJT Partners L.P. to provide us with restructuring and transactional services, and O'Melveny & Myers LLP to provide us with restructuring legal advice and assistance. We have also begun discussions with certain of our creditors to explore potential restructuring alternatives.
We also are exploring opportunities to raise funds through potential sales of some of our mills and related facilities, which may include our Stevens Point, Androscoggin and Duluth mills, our recently idled Wickliffe Mill, and the hydroelectric generation facilities associated with our Androscoggin Mill.
During this evaluation process, customers can expect to receive the same high-quality products and services that originally led them to select Verso as a supplier. There should be no changes or delays in the ordering process or deliveries, and customers should continue to work with their current sales representatives. We remain steadfastly committed to running our mills safely and efficiently, reducing costs and delivering the exceptional customer experience that Verso is known for.
As always, our aim is to ensure that all customer needs are seamlessly met. Please do not hesitate to call me if you have questions or concerns.
Thank you for your continued support of Verso.
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