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Paper mill files for Chapter 11 protection, hopes for better future

On Behalf of | Jan 29, 2016 | chapter 11 |

Most companies in New York and throughout the Unites States go through fluctuations. Some years are positive and bring a lot of growth, while others may be a bit stagnant financially or even see some decrease in profits. The main hope is that over time the company sees growth and progresses in its core mission to satisfy customers and to keep employees happy.

Recently a paper mill in another state filed for bankruptcy after diligently trying to restructure its business without the help of a bankruptcy court. Although the company seemed to put a lot of effort into paying off its debts, it ultimately decided to file for Chapter 11 protection.

The paper mill, owned by Verso Corp, employs some 560 employees. Even though the company is trying to find ways to eliminate $2.4 billion in debt, it says the restructuring will not affect how the company is run day-to-day.

The company’s president and CEO says they decided to take this “proactive step” so that the company could become stronger and eventually overcome the current economic environment. The issue that the company ran into had to do with competition from imports as well as an overall decline in the demand for their products.

Although the bankruptcy may affect those who may want to withdraw from their pensions during the process, the company says it does not anticipate any layoffs or any change to employees’ benefits packages.

There is hope that the company can find a successful restructuring plan that will benefit all those involved in the long run.

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