Norway-based specialty paper producer Hunsfos Fabrikker to file for bankruptcy, discontinue operations immediately as support for debt restructuring has not been sufficient

VENNESLA, Norway , September 23, 2011 (press release) – Hunsfos Fabrikker AS initiated debt restructuring proceedings under the court of Kristiansand on 23 August. The Creditors Committee today reached a decision to discontinue operations with immediate effect.

All employees will be receive notice, since no guarantee for restart of production is given. The management had remained optimistic that a debt restructuring solution could be found, and the customers of Hunsfos have been supporting in the last period. However, the support has been insufficient, and has not met the requirements from the management and the Creditors Committee, set to make a continuation of production possible.

The Creditors Committee has to this regard also approved that the company should file for bankruptcy.

The appointed attorney Mr Håvard Wiker will continue to look for alternative solutions for the operation at Hunsfos, and has not ruled out interest from new owners or investors that could allow Hunsfos to again commence production.

Hunsfos has been challenged by high raw material prices, high energy prices and the strength of the Norwegian Kroner, and has simply not been able to pass the effects of these to customers with the speed or level needed to maintain a sustainable business.

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