Coverage: Verso files for Chapter 11 bankruptcy protection
JAY — Verso Corp. does not expect to close or sell any of its active mills in its anticipated plan of reorganization under Chapter 11 bankruptcy protection, according to versoco.com.
Verso and its subsidiaries filed voluntary petitions Tuesday with the U.S. Bankruptcy Court in the District of Delaware to reorganize under Chapter 11 of the U.S. Bankruptcy Code.
The company intends to operate its business as usual throughout the restructuring.
Verso also does not expect the day-to-day operations to be affected throughout the bankruptcy protection process.
It is expected that most employees should see no change in their day-to-day jobs as a result of the filings. The company plans to continue existing wage and benefit programs, including medical, dental and other insurance programs, pension plan and 401(k) plans, according to the restructuring website.
According to court papers as of Tuesday, Verso employs 5,172 employees in the United States, of whom 5,123 are full-time employees, three are part-time employees and 46 are temporary employees, and one full-time salaried employee in Canada. About 560 employees are left at the Androscoggin Mill in Jay after 300 jobs were expected to be eliminated as of Dec. 31, 2015.
Verso also expects to continue to provide benefits such as paid vacation, sick leave, holiday pay and expense reimbursement. These programs remain subject to manager approval and business needs.
The company claims Verso’s long-term success depends on the company’s ability to align its supply of products with its customers’ demand for them.
“We are continuously evaluating our business to assure that it operates as efficiently as possible and that our supply remains in balance with our customers’ demand,” according to the site.
While Verso initially contemplated the possibility of selling certain mills as part of the restructuring effort, the company’s anticipated plan of reorganization does not include the sale of any active mills, according to the website.
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