Norske Skog Postpones Tissue Conversion Project at its Bruck Mill

"Due to the ongoing recapitalization at Norske Skog, the tissue project at the Bruck mill in Austria has been delayed," a spokesperson at the company said, adding: "Paper machine PM 3 will therefore continue to produce newsprint until the end of 2018, and will not be closed at the end of 2017 as previously intended."

Norske Skog is currently attempting to carry out an important recapitalization process. The firm recently extended the consent deadline for the process from July 12 to July 31, and postponed the publication of its Q2 2017 financial results from July 13 to August 23.

It also recently announced that it had received a jointly supported transaction proposal from an ad hoc committee representing the majority of the holders of the EUR 290 million ($334.8 million) senior secured notes due in 2019 and the holders of the EUR 100 million Norwegian securitization facility, as well as various alternative recapitalization proposals from other key stakeholders.

Norske Skog announced its intention to enter the tissue market in July 2015 following a comprehensive strategy review.

The Bruck mill’s PM 3 produces 125,000 tonnes/yr of newsprint.