Phone Call Us 414-326-9231
Toll Free 866-678-9352
Text Us 414-277-7742

Paper company’s Chapter 11 filing highlights concerns for industry

Milwaukee readers may have heard the news that the owner of Virginia-based paper company Verso Corp. recently filed for bankruptcy, listing $2.4 billion in debt. The company owns two mills in Wisconsin, one in Stevens Point and the other in Wisconsin Rapids, having acquired them from NewPage about a year ago.

Mayors in both Stevens Point and Wisconsin Rapids have said that the closing will have no impact on operations at the plants. Still, the bankruptcy filing does highlight the challenges faced by the paper industry, which include the push to go paperless and the import of cheaper foreign products. Verso CEO, David Paterson, has said that the demand for paper products, particularly American-made products, has declined since Verso acquired the Wisconsin plants.

Verso is not alone in its struggles. According to court records, 27 other companies associated with Verso have filed for Chapter 11 bankruptcy in Delaware, Verso’s state of incorporation. Chapter 11 bankruptcy, like Chapter 13 bankruptcy, is a form of reorganization bankruptcy, meaning that it provides debtors the opportunity to reorganize their debts and come up with a repayment plan to pay off creditors.

Chapter 11 bankruptcy can be filed by either businesses or individuals. In individual filings, there are some similarities to a Chapter 13 filing, but there are some unique aspects of the process. More often, it is corporations and partnerships which file for Chapter 11 bankruptcy. In our next post, we’ll speak a bit more about some of the basic of Chapter 11 bankruptcy.

Source: United States Courts, “Chapter 11-Bankruptcy Basics,” Accessed Feb. 1, 2016.

No Comments

Leave a comment
Comment Information

Contact Our Milwaukee Law Firm

Reach Miller & Miller Law, LLC, online or call us at 414-326-9231 to schedule a free initial consultation. Our law office also provides Spanish language services. Se habla español.

To schedule an initial consultation, call 414-326-9231 or contact Miller & Miller today.

Free Case Evaluation

* indicates required field

Milwaukee Office
633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Law Office Map

Kenosha Office
6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Law Office Map

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Law Office Map

Madison Office
2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Law Office Map

Glendale Office
6001 N. Green Bay Avenue
Glendale, WI 53209

Phone: 414-973-8662
Glendale Law Office Map