Norwegian investor Christen Sveaas seemed to be getting a good reception for a rescue plan he and the board of Norske Skog presented for the troubled forest products company on Monday. His potential replacement as board leader, Sven Ombudstvedt, was positive.
“In this proposal we have a little something for everyone,” Sveaas said when presenting the plan in Oslo. News bureau NTB reported that Sveaas had received input from both creditors and shareholders for the plan, which would reduce the Norske Skog’s degree of debt by converting NOK 6 billion of it to shares, which would be distributed to creditors and shareholders.
“Everyone always wants a bit more, no one is satisfied, but the alternative (bankruptcy) is worse,” Sveaas said. Creditors now have 10 working days to evaluate the proposal for saving Norske Skog. Approval is needed from 75 percent of them in order for the proposal to go through.