Yesterday news broke about Verso Corp., the owner of paper mills in Wisconsin Rapids and Stevens Point, had stopped paying local loggers amid rumors that it was on the verge of bankruptcy. Today those rumors became true after Verso Corp filed for chapter 11 bankruptcy protection.
Verso President and Chief Executive David J. Paterson said in a news release the company has worked "to develop a restructuring plan to eliminate $2.4 billion of our outstanding debt" and exit bankruptcy "in a short time frame."
There is a fear of what this might mean for local mills located in Quinessec and Escanaba, Michigan. Many have said there is nothing to worry about locally, but others said local U.P. loggers haven't been paid for wood delivered.
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Only time will tell if this "restructuring" works and people keep the jobs they desperately need in these areas where jobs are rare.
Verso spokeswoman Kathi Rowzie said those loggers who have not been paid will have an opportunity to file claims to be compensated as part of the bankruptcy proceedings.
Bryce made a comment on my facebook page that said, "We stopped hauling to escanaba and quinessec mills a few weeks ago due to non payment for wood already delivered. Very bad thing for the logging industry and even our local economy. Anxious to see the outcome for any businesses associated and/or affiliated with Verso."