Funds managed by Oceanwood Capital Management, U.K., and Aker Capital AS, a wholly owned subsidiary of Aker ASA, Norway, this past week issued a joint press release stating their intention to form a new company (Bidco), which will bid in an auction process to ensure that there is a strong new owner of Norske Skog's (Norway) paper mills. 

The board of directors of Norske Skogindustrier ASA said that it is pleased that Aker, with its strong industrial knowledge and financial expertise, has taken a role together with Oceanwood in the recapitalization of the Norske Skog group. 

The Norske Skog board will continue to safeguard the interest of all of its stakeholders through the recapitalization process, noting that "as part thereof, the Norske Skog group's seven paper mills will continue as normal, and our customers, suppliers, and other business partners will continue to receive high quality products and the best service from Norske Skog without interruption through the remainder of the recapitalization process." 

Following the announcement by Oceanwood and Aker, a consensual recapitalization of the Norske Skog group is unlikely to be achievable. Consequently, Norske Skogindustrier ASA is likely to initiate insolvency proceedings. The Norske Skog board of directors will continue to assess the situation and the implactions of the recent developments.