Verso bankruptcy news means local lumber suppliers will get paid

Category: Bankruptcy Law Published: Monday, 01 February 2016 Written by Admin

Loggers work about 15 hours, seven days a week, and when theyre not paid, the effects are understandably felt hard. Its what many in the industry have been experiencing from Verso until Tuesday.

This is what I love to do, this is our life, Owner of Enterprise Forest Products Dennis Schoeneck said.

What Schoeneck loves to do, is working as a logger, but for the past few weeks, he hasnt been getting paid for his timber - paid that is by Verso Paper Mill.

How do you describe the loss of income? Schoeneck said.

Schoeneck described it as a trickle effect.\

Were the ones responsible for paying the landowners, the truckers, everybody involved in cutting this timber, so if we dont get paid for it, nobody else down the line does either, Schoeneck said.

So Schoeneck said their future has seemed so uncertain that its scary.

Weve got millions of dollars invested into what we do and theres nobody behind us that if something like this happens that theyre going to just subsidize us to keep going, theres none of that happening, Schoeneck said.

Now that Verso has filed for bankruptcy, the company should have enough money to pay their logging suppliers, and the news couldnt come at a better time because the ground is frozen and loggers are getting ready for spring thaw.

Right now is the time to prepare for that period to make sure you can do equipment repairs and be able to survive as a family and you know have money for groceries and those types of things, Executive Director for the Great Lakes Timber Professionals Association Henry Schienebeck said.

Schoeneck said Tuesdays news about Verso is somewhat of a relief, but it doesnt take away his concern for all of the paper mills in Wisconsin.

Without these paper mills, the management of our timber goes away, Schoeneck said.

A fact that Schoeneck said makes it all the more important to keep the paper mills, in better shape.

The bankruptcy means Verso will have funds freed up to pay suppliers. Schoeneck said they will get paid on their regular schedule moving forward, and within the next six months he should get paid for the last few weeks.

Verso also expects to finalize a debtor-in-possession financing package totaling up to $600 million, in a move designed to bolster daily operations as it reorganizes.

According to Chapter 11 bankruptcy law, the company is required to pay their suppliers in full and on time for all goods and services provided after the filing date. Rowzie said they intend to make good on all of the missed payments to suppliers as well. The company will be sending out claim forms that will have to be submitted in order to collect the money that is owed.

Suppliers seeking missed payment can call 855-410-7359 or This email address is being protected from spambots. You need JavaScript enabled to view it.

Anyone who provided us goods and services and has not been paid yet, those claims would go through the chapter 11 process in court," she said.

Verso says it does not expect to close any mills, though it will continue to evaluate its mills to ensure that they are operating as efficiently as possible.

The Associated Press contributed to this report

Hits: 895