GSO, the biggest shareholder in embattled paper manufacturer Norske Skog, wants to dump three directors from the eight person board, and agree new refinancing proposals.
Norske Skog, currently dealing with what has become a massive and growing debt of €1bn ($1.6bn), last month announced it was seeking to restructure its loans.
However this has not been enough to satisfy GSO, which now owns 11 per cent of the company, and has called for an extraordinary general meeting to take place by January 7.
Challenging business: Norske Skog’s Boyer mill
The company has suffered a double whammy of rapidly falling demand for its newsprint stocks, allied with the diminishing value of the Norwegian kroner.
Norske Skog operates the Kawerau Mill here, two mills in Australia (Albury in NSW and Boyer in Tasmania), and four in Europe.
Norske Skog’s Australasian operations supply some 600,000 tonnes of stock into the local market, and produces paper for much of Asia. Its four European mills supply Europe and the rest of the world.
