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Stora Enso
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Helsinki, Finland, 15 July 2009 -- Stora Enso will record a write-down of at maximum USD 575 (EUR 418) million related to its 19.9% NewPage shareholding and vendor note as a nonrecurring item in its second quarter 2009 results

Stora Enso Oyj, NewPage Corporation and NewPage's largest  shareholder, Cerberus Capital Management, L.P., announced a plan to  reorganize NewPage's capital structure through a series of concurrent  transactions, including debt tender offers and a potential contribution and  cancellation of a portion of the NewPage vendor note held by Stora Enso and the  debt acquired by Cerberus. As a result of the concurrent transactions and poor prospects of an upturn in the market, Stora Enso will record a write-down of at maximum USD 575 (EUR 418 net of hedges) million related to its NewPage shareholding and vendor note as a nonrecurring item in its second quarter 2009 results.

The final write-down amount depends on the result of a tender offer by an affiliate of Cerberus and NewPage, the amount of the vendor note owned by Stora Enso that is contributed and cancelled as part of the concurrent transactions and the fair value of the remaining vendor note. This write-down will have a  maximum effect of USD 308 (EUR 212 net of hedges after tax) million on  Stora Enso's equity because these unlisted shares and the vendor note have  previously been revalued and the USD 267 (EUR 201) million change in their fair  value has been recorded in equity as part of Other Comprehensive Income.

As part of these concurrent transactions, Stora Enso's NewPage vendor note  issued by NewPage Group with nominal value of USD 200 million (EUR 142 million)  and accrued interest may be partially (50%-65%) contributed and cancelled. The conversion is subject to successful debt recapitalization by NewPage and an affiliate of Cerberus, NewPage's indirect controlling shareholder, and their election to forgive debt in Cerberus' sole discretion. The concurrent transactions are expected to be finalized by the end of the third quarter of 2009. The concurrent transactions are intended to strengthen New Page's capital structure and its position as the leading coated paper producer in North America by increasing its operating flexibility.

The vendor note formed part of the transaction consideration when Stora Enso finalized the divestment of its North American paper operations to NewPage on 21 December 2007. Following the contribution and cancellation of a portion of the vendor note, the percentage of NewPage shares owned by Stora Enso will remain 19.9%.

Stora Enso is the world leader in forest industry sustainability. The company offers its customers solutions based on renewable raw materials. Stora Enso is included in the Global 100 list of the world's most sustainable companies. Stora Enso is also listed in the Dow Jones Sustainability Index, the FTSE4Good Index, and the Climate Disclosure Leadership Index. Stora Enso employs 29 000 people worldwide, and had sales in 2008 amounting to EUR 11.0 billion. 
 


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