A paper maker with Wisconsin operations has filed for Chapter 11 bankruptcy protection. NewPage said August 16th that it was uncertain whether it could complete a sale of $131 million in assets, because it was hurt by higher prices for raw materials in its most recent quarter, and because of a slower demand for its products.
Even before that, the company that bought NewPage in 2005, Cerebrus Capitol Management, had to issue $900 million in junk bonds to make the purchase happen, and has been unprofitable since 2006. New Page says its gotten up to $600 million in debt financing commitments to continue operations, while it reorganizes under Chapter 11 bankruptcy protection. NewPage is headquartered in Ohio and operates central Wisconsin mills in Wisconsin. It closed its Kimberly mill in 2008.
Matt Lehman, WSAU