May 23--PORTLAND, Maine -- The bankrupt owner of the Jay mill, Verso Corp., posted $88 million in losses for the first quarter of the year, with operating losses nearly doubled from one year ago.
Verso Corp., which has retained possession of its paper mills as it reorganizes through a Chapter 11 bankruptcy, released its first quarter earnings Monday.
It showed a $110 million loss from operations and $26 million in interest expenses.
The company one year ago acquired its larger competitor NewPage in a $1.4 billion leveraged buyout, which Verso expected to lead to savings in the first year. Those savings weren't enough to keep up with the company's nearly $3.9 billion in liabilities.
Verso filed for bankruptcy in January, saying increasing competition from imports, declining demand for coated paper and the rising value of the dollar contributed to the decision.
Before the bankruptcy, the company also sold off power generators near its mill in Jay, which it said would not impact the mill.
The company said in its financial statement that it plans to continue operating as usual and paying vendors, subject to approvals by the bankruptcy court.
"However, operating in bankruptcy imposes significant risks on our businesses and we cannot predict whether or when we will successfully emerge from bankruptcy," the company stated.
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