Norske Skog : Strong support for the recapitalization

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The board of directors and the management of Norske Skog are pleased to have received strong support from both secured and unsecured bondholders and shareholders for the proposed recapitalization solution. In direct dialogue with these holders, the vast majority are supportive of the proposal. The consent solicitation deadline is extended until Tuesday 31 October at 17:00 CET to allow sufficient time for holders to provide formal consent through their respective bond custodians and submit lock-up agreements to Lucid Issuer Services Limited as information and tabulation agent.

In relation to the secured and unsecured tranches and following direct dialogue with holders, the indications of support suggest that the thresholds required to implement the transaction by way of Schemes of Arrangement will be reached.

A consensual recapitalization proposal is also contingent upon support from the holders of the EUR 100 million Norwegian Securitization Facility due 2020 (NSF) and a majority of the 2115 Perpetual Notes. The extension period will allow holders to provide formal consent and submit lock-up agreements. The extension period will also be used to continue discussions with the holders of the NSF and holders of the 2115 Perpetual Notes to try to achieve support also from these two remaining creditor groups.

- We are pleased that practically all stakeholders targeted in the consent solicitation process are supporting for a consensual recapitalization of the current Norske Skog group. We will now spend time to ensure the registration and documentation of formal support for the recapitalization occurs. Equally important, we will do our outmost to obtain the support to the recapitalization from the holders of the NSF and the 2115 Perpetual Notes holders," said Mr. Christen Sveaas, Chairman of Norske Skogindustrier ASA.

Regardless of the outcome of the recapitalization process, the business operations at our seven paper mills will continue as normal.

If the requisite consent levels are not reached, the listed parent company Norske Skogindustrier ASA will likely file for debt negotiations or bankruptcy in the Norwegian courts. The secured creditors of Norske Skog AS will then likely enforce upon their security resulting in the operating business being transferred into new ownership.

Simultaneously with the efforts to gather the required consent for the recapitalization proposal, the board of directors and the management of Norske Skog are preparing a contingency plan if adequate consent for the recapitalization solution is not reached. As part of this plan, Norske Skog has involved financial advisors pursuant to the terms of the indenture for the 2019 Senior Secured Notes to perform a valuation of the group.

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