NewPage Wants Suit Over $1.7B LBO Kept Under Wraps

Law360, Wilmington (June 1, 2012, 5:26 PM EDT) -- Fearful of violating a confidentiality agreement, NewPage Corp. asked a Delaware bankruptcy judge on Friday to maintain the seal on a creditor lawsuit challenging the company’s $1.7 billion leveraged buyout of a rival in 2007.

Both the official committee of unsecured creditors, which lodged the adversary suit, and second-lien noteholders, who are named as defendants, favor unsealing the complaint, which contends that the paper manufacturer’s buyout of Stora Enso North America Inc. left NewPage insolvent and amounted to a fraud on creditors.

But the suit also...
To view the full article, register now.