Judge Greenlights $495M DIP Loan For NewPage

Law360, Wilmington (September 8, 2011, 5:16 PM EDT) -- A Delaware bankruptcy judge on Thursday cleared NewPage Corp. to borrow $495 million to keep its factories humming and preserve some 6,000 jobs as the foundering paper company reorganizes.

U.S. Bankruptcy Judge Kevin Gross indicated at a hearing that he would sign off on the first portion of a debtor-in-possession facility that would be worth up to $600 million on final approval, along with an order permitting NewPage to use its lenders’ cash collateral.

The company’s attorneys said they were working on language to appease lenders’...
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