NewPage Corporation ("NewPage") has announced that it is seeking to amend its Amended and Restated Superpriority Debtor-In-Possession Credit and Guaranty Agreement dated as of September 23, 2011 (the "DIP Credit Agreement"; capitalized terms referenced below are defined in the DIP Credit Agreement). Among other things, NewPage is seeking to reduce the Minimum Consolidated Adjusted EBITDA covenant and in conjunction would increase the Notes Payment Reserve. In addition, NewPage intends to obtain the flexibility for cash collateralized letters of credit to mature beyond the term of the DIP Credit Facility.
Obtaining these amendments requires consent of a certain portion of the Lenders and some of the amendments may require the approval of the United States Bankruptcy Court for the District of Delaware. There are no assurances that NewPage will be successful in its negotiations with the Lenders or in obtaining court approval.
SOURCE NewPage Corporation