Stora Enso will record a negative non-recurring item of USD 180 million related to NewPage Stevens Point Mill paper machine lease in third quarter 2011
STORA ENSO OYJ STOCK EXCHANGE RELEASE 7 September 2011 at 15.30 EET
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.
For further information, please contact:
Ulla Paajanen-Sainio, Head of Investor Relations, tel. +358 2046 21242
Lauri Peltola, Head of Communications and Global Responsibility, tel. +358 2046 21380
A previous stock exchange release concerning New Page is available at www.storaenso.com/press
- 15 July 2009: Stora Enso will record a write-down of at maximum USD 575 (EUR 418) million related to its 19.9% NewPage shareholding and vendor note as a non-recurring item in its second quarter 2009 results
More information about the lease obligation on Stora Enso’s Financial Report 2010 on Note 31 page 117.
Stora Enso is the global rethinker of the packaging, paper and wood products industry. We always rethink the old and expand to the new to offer our customers innovative solutions based on renewable materials. Stora Enso employs some 26 000 people worldwide, and our sales in 2010 amounted to EUR 10.3 billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV, STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) in the International OTCQX over-the-counter market.
STORA ENSO OYJ