Key Developments: Verso Paper Corp (VRS)
1.17USD
24 May 2013
$-0.03 (-2.50%)
$1.20
$1.22
$1.25
$1.13
58,723
38,206
$2.38
$0.98
Latest Key Developments (Source: Significant Developments)
Verso Paper Corp Announces Ended Discussions Regarding Potential Business Combination With NewPage Corporation
Verso Paper Corp. announced that it has decided to cease further discussions with NewPage Corporation or its creditors regarding a potential business combination. Full Article
Verso Paper Corp. Announces Permanent Shutdown Of Sartell Mill
Verso Paper Corp. announced that after conducting a comprehensive assessment, Verso has made the difficult decision not to reopen its paper mill in Sartell, Minnesota. Verso’s decision is based on the length of time that it would take to rebuild the mill structures and systems that were destroyed in the Memorial Day fire and explosion, and the marketplace challenges that would present. The permanent closure of the Sartell Mill will reduce Verso’s annual coated groundwood capacity by 180,000 tons or approximately 20%, and will eliminate approximately 35,000 tons of annual supercalendered paper capacity. The mill closure will result in an aggregate pre-tax charge to earnings of approximately $114 million, which is expected to occur primarily in the third quarter of 2012. This includes approximately $19 million for severance and benefit costs; approximately $81 million in non-cash charges primarily related to the impairment of property, plant and equipment; and approximately $14 million related to other costs. The severance and other shutdown costs require the outlay of cash, which is expected to occur primarily in the third quarter of 2012. Settlement negotiations regarding this loss claim with our insurance carrier are continuing and The Company expect resolution in the coming months. Full Article
Verso Paper Corp. Announces Board Changes
Verso Paper Corp. announced that Michael A. Jackson will retire as the President and Chief Executive Officer and a director of Verso and that David J. Paterson has been elected by Verso’s board of directors to serve in such roles, with both events to occur effective as of May 14, 2012. Full Article
Verso Paper Corp. Issues Q4, FY 2011 Guidance; EBITDA Guidance In Line With Analysts' Estimates
Verso Paper Corp. announced that for fourth quarter of 2011, it expects adjusted EBITDA to be in the range of $45 million to $50 million. Adjusted EBITDA excludes charges from special items of approximately $45 million primarily related to the shut down of three paper machines, goodwill impairment and hedging transactions. Operating income before items to be within the range of $14-$19 million. Including approximately $52 million of charges primarily related to the paper machine shut-downs, goodwill impairment and hedging transactions the Company expect operating losses within the range of $38 million to $33 million for fourth quarter of 2011. For fiscal 2011, it expects adjusted EBITDA to be within the range of $200-$205 million. Adjusted EBITDA excludes charges from special items of approximately $80 million primarily related to net losses on debt refinancing, the shut-down of three paper machines, goodwill impairment, and hedging transactions. Operating income before items to be within the range of $74-$79 million. Including approximately $60 million of charges primarily related to the paper machine shut-downs, goodwill impairment and hedging transactions the Company expect operating income within the range of $14 million to $19 million for fiscal 2011. According to I/B/E/S estimates, analysts were expecting the Company to report EBTITDA of $52 million for fourth quarter of 2011; EBITDA of $206 million and EBIT of $ Full Article
Verso Paper Corp. Announces Permanent Shutdown Of Three Paper Machines
Verso Paper Corp. announced that it will permanently reduce its annual production capacity by 193,000 tons. This will be accomplished by the permanent shutdown of the No. 2 coated groundwood paper machine at its mill in Bucksport, Maine, effective October 23 and two supercalendered (SC) paper machines at its mill in Sartell, Minnesota, effective December 14. The shutdown of the No. 2 paper machine at the Bucksport Mill will reduce Verso’s annual coated groundwood capacity by 90,000 tons or approximately 10%. The Bucksport Mill’s workforce will be reduced by approximately 125 employees.The shutdown of the No. 1 and No. 2 paper machines at the Sartell Mill will eliminate approximately 103,000 tons annually of SCA and SCB paper capacity. The Sartell Mill’s workforce will be reduced by approximately 175 employees. Full Article
Earnings vs. 
Estimates
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.
