Two board members at struggling global newsprint giant Norske Skog have been forced out after the company’s major shareholder blocked plans to restructure its massive debt of €1 billion.
GSO Capital Partners, controlled by equity firm Blackstone Group, called an extraordinary general meeting last week to vote on a new refinancing proposal and to seek the ousting of three Norske Skog directors - Karin Bing Orgland, Siri Beate Hatlen and Ole Enger.
Just days before the meeting, Orgland and Enger both resigned from the board and said they would not be standing for re-election.
The general meeting then voted for a new exchange offer and elected Joanne Owen - a partner in global law firm DLA Piper - and Nils Ingemund Hoff - currently CFO of Bergen Group and a former consultant to investment company Eagle AS – as the new shareholder-elected members of Norske Skog's board of directors.
Late last year, the Norwegian papermaker had asked holders of senior note loans to switch to new unsecured loans that mature at later dates in a bid to strengthen its capital structure in the face of a mounting debt problem. But the plan was opposed by GSO Capital, which became the company’s largest shareholder in December with an 11% stake.
Following last week's extraordinary meeting, the company announced that the existing exchange offer had been terminated and a new exchange offer would be launched via a roadshow:
Norske Skog is offering a new exchange to all holders of 2016 and 2017 notes. The new exchange offer is supported by GSO Capital Partners L.P. (GSO) and Cyrus Capital Partners, L.P. (Cyrus), which through their funds hold a substantial part of the outstanding 2016 and 2017 notes. The exchange offer closes on February 3, 2016. Norske Skog will host one-on-one meetings for eligible holders of 2016 and 2017 notes in London on Monday, January 25, 2016. Non-London based eligible holders will be offered one-on-one conference calls the same day.
Norske Skog has two mills in Australia – at Boyer in Tasmania and Albury in NSW – and operates the Tasman mill at Kawerau in New Zealand.