Norske Skog goes it alone for last roll of the debt dice

摘要

Norske Skog's decision to single-handedly launch a distressed exchange on its bonds took market participants by surprise last week, though most think the latest proposals will do little to solve the paper maker's crippling debt woes. The Norwegian firm has offered holders of its 2016 and 2017 bonds an exchange into longer dated notes with lower interest at a haircut, while warning that it may need a comprehensive balance sheet restructuring if the deal is not successful. It is the second time this year that the company has tried to push through a debt exchange as its already poor performance has declined further. However, it did not appoint banks to help it with the new exchange, a very unusual step though some thought it was understandable. "Last time they paid the equivalent of half a year's capex (in fees) for a deal that ultimately didn't work," said a hedge fund investor.