Norske Skog Bondholders Note SPA Signing

LONDON & OSLO, Norway--()--Accounts managed by Halcyon Capital Management LP and its affiliates, Cyrus Capital Partners LP, Foxhill Opportunity Fund LP, BulwarkBay Investment Group and Capital Four AIFM A/S, together the AdHoc SSN Holders Committee (‘AHC’), holders of 39% of the Norske Skog Senior Secured Notes (“SSNs”), note the announcement made on Friday 4th May 2018 in connection with the execution of a binding sale and purchase agreement with Oceanwood Capital Management LLP (“Oceanwood”) with respect to the purchase of the entire share capital of Norske Skog AS (“Norske Skog” or the “Company”).

The AHC, which participated in the process in cooperation with Umoe AS, will review and carefully analyse the aforementioned announcement and the financial, legal and other relevant information underpinning the statements made in the announcement. As a large holder of SSNs, and therefore a meaningful stakeholder in the Company, the AHC, as it has been from the inception of its investment in Norske Skog, will remain focused on preserving the fundamental value of the Company and maximising the recoveries to the benefit of bondholders while avoiding value leakage. Consequently, it will remain vigilant on how the Company, its advisers, and Oceanwood progress the various administrative, legal and, most importantly, financing-related steps and procedures designed to facilitate a swift closing of the proposed acquisition of the Company by Oceanwood. In particular, the AHC looks forward to receiving more details of Oceanwood’s financing plans as well as other contractual aspects of relevance to the AHC’s assessment.

The AHC believes that the Security Agent in relation to the SSNs, who now must execute the proposed transaction as the seller counterparty, should be focused on ensuring that the proposed acquisition is certain, deliverable and delivers the stated recoveries in an efficient and time effective way. Any failure in connection therewith may undermine the competitive process that has been conducted and may prejudice the interests of relevant stakeholders. The AHC continues to reserve all its rights as a large holder of the SSNs and will make further announcements as required.

The AHC is receiving financial advice from Lazard & Co., Limited and legal advice from Paul Hastings and Grette in relation to this matter.

Lazard & Co., Limited, which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting exclusively for the AdHoc SSN Holders Committee and for no one else in connection with the matters referenced in this announcement and will not be responsible to anyone other than the AdHoc SSN Holders Committee for providing the protections afforded to its clients or for providing advice in connection with the matters referenced in this announcement. Neither Lazard & Co., Limited nor any of its affiliates owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of Lazard & Co., Limited in connection with this announcement, any statement contained herein, the matters referenced in this announcement or otherwise.


Halcyon Capital Management:
Damien Miller, +44-207-024-4401
Portfolio Manager, Managing Principal
Spiro Youakim, +44-20-7187-2000
Managing Director
Laurence Rehfeld, +44-20-7187-2000