Stora Enso will record a provision with a cash impact of approximately USD 180 million (about EUR 128 million) as a negative non-recurring item (NRI) in its third quarter 2011 results due to NewPage Corporation’s Chapter 11 filing in the USA. On 7 September 2011 NewPage voluntarily filed for Chapter 11 protection under the US Bankruptcy Code to reorganise its debt.
When Stora Enso North America, Inc (SENA) was divested to NewPage, the Stevens Point Mill Paper Machine (PM) 35 lease obligation was transferred from Stora Enso to NewPage. However, as explained in the Group’s Financial Statements since 2007, Stora Enso remained as guarantor of the lease. Stora Enso intends to recover a portion of the recorded cost related to the lease obligation in NewPage’s restructuring.
In the second quarter of 2009 Stora Enso wrote down to zero value its 19.9% shareholding in NewPage and the vendor note it holds.