NewPage in Negotiations With Lenders Regarding Bankruptcy Loans
The struggling Ohio-based papermaker owned by Cerberus Capital Management LP, NewPage Corp., is in negotiations with its lenders that would keep the company buoyant during possible bankruptcy proceedings.
Usually, struggling companies negotiate bankruptcy loans as a safety measure and then reach deals with creditors to restructure debts outside of court. So it's not necessary that NewPage will file for bankruptcy after talks with creditors.
NewPage would file a prepackaged bankruptcy that had enough support from creditors in advance to get a restructuring plan approved speedily .
It is possible that the bankruptcy filing would be a predetermined deal, which would need to get more creditor support after NewPage filed for bankruptcy protection in order for a reorganization plan to be approved.