One of the biggest investors in Norske Skog bonds has rejected the proposal submitted on 11 October to restructure the Norwegian company's finances. Restructuring Capital Associates LP. and its affiliate Bennett Management Corporation ("Bennett") declared in a press release last Friday that they reject the latest proposal. James Bennett, founder of Bennett Management Corporation, said that his company favoured refinancing in principle, which would convert all of Bennett's bonds into equity, but not if it involved writing off 98% of the value of his bonds. Bennett explained that it held over 50% of the bonds due in 2026 and over 40% of the bonds due in 2033, together worth over €100m of unsecured bonds issued by Norske Skog. Since Norske Skog made acceptance of the restructuring proposal contingent to approval from at least 75% in value of the company's creditors, the proposal could not be implemented without the approval of Bennett, the company said.
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