LONDON, March 21 (IFR) – Norske Skog has rejigged its bond
exchange yet again in response to a controversial legal ruling,
with the help of new financing from funds GSO and Cyrus.
The latest move ups the ante in the long-running battle
between Norske Skog’s unsecured and secured bondholders, which
has sparked accusations of nefarious use of credit default swaps
on both sides.
A New York court ruling earlier this month allowed the
contested debt exchange on the paper company’s 2016 and 2017
unsecured bonds to proceed in theory, but made it unworkable in
practice.
This is because US district judge Richard Sullivan said that
the creation of new securitisation notes – a key aspect of the
exchange – would breach the terms of th…
Read the full article at: http://www.reuters.com/article/norske-skog-restructuring-idUSL5N16T3SZ