NewPage files for bankruptcy; affect in Duluth not known
September 7, 2011 at 7:00 pm in Duluth News Tribune
Ohio-based NewPage Corp., which owns the West Duluth paper mill and is the largest North American maker of coated papers, filed for bankruptcy Wednesday.
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What a Crime…this company started as Lake superior Paper Industries, they made money, subsequently bought by Consolidated Paper (one of the best run paper companies in the U.S.), they made money, then bought by Stora Enso, a Finnish company, they made money, now owned by Cerberus Capital Management, guess what??…they don’t make money. In a leveraged capital buy-out, which means they borrowed so much money they can’t make the payments, Cerberus took over in 2005 and has been losing money ever since. The winners are Wall Street gurus, who make millions in fees for arranging the buy-out.
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That’s Wall Street for you. There are derivatives traders who will make millions off of the failure NewPage.
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The problem is not the managment it is the industry itsself. I love to read but magazines, books and newspaper ars going to be extinct. I am sitting in Fl and reading the Duluth paper. I don’t have any magazine susription-even though they are so cheap, the last 2 I had went belly up. I have resisted the e-book movement beacause I like holding a book. My daughter and son-in law iare lawyers and all of their resserce are done on line.The son-in-law is a journalism major and he agrees. I hope that the e-book catches on for school book, maybe the cost will go down. I can see the time in the not to distant future when to see a book you have to go to a museum
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