For those who gave me thumbs down on predicted BK ... told ya so. I hope that they are able to shed enough debt to keep what's left running or sell to an owner willing to make paper rather that sell scrap. Fortunately the scrap market is way down now.
The Bangor Daily News reports that Verso is preparing a bankruptcy filing this week. I hope they can continue operations for the sake of the employees and suppliers.
Around 600. It is a pretty big plant. They actually had been hiring over the past year as demand for the environmentally friendly recycled molded fiber products has been good.
Waterville, Maine but the Hammond Indiana plant also makes some for Chipotle. They did not say how many if any would be affected in Hammond.
Huhtamaki, the molded paper products company in my hometown that makes bowls for Chipotle is laying off 30 workers for 8 weeks or so due to the crash in demand. Tells me business is not going very well. The company feels that this is temporary and the laid off workers will be recalled in the future.
The Reagen administration ended some 26 years ago. There must have been some other things in the interim that have impacted the loss of the middle class. Perhaps NAFTA, Dodd-Frank, etc.
It looks like most people are more than happy to have it stuck to "big oil" with their "obscene" profits. Problem is "little oil" is going to be put out of business and swallowed up by "big oil" making for even "bigger oil". Unfortunately Pengrowth is not on the "too big to fail" list.
At the current exchange rate of $1.45 Canadian to the US $, 30$ US/ barrel gives us $43.50 Canadian in revenues which does not sound quite as disastrous. I still wonder if bankruptcy is avoidable.
So no I don't believe we will be shivering in our caves, but maybe going back to our wood/ pellet stoves for heat and maybe firing up the biomass facilities once again and putting people back to work.
We have plenty of low grade wood up here in Maine with a withering market for it due to the shut down of the Paper Mills and several biomass facilities. This "green" energy source is literally dying in the forest as biomass use is being replaced by oil. This is resulting in the loss of jobs for woods workers and the folks running the wood pellet mills and biomass to energy facilities. Thanks Saudis for costing us much needed jobs up here in the rural Northeast.
: Our all knowing federal government is going to sell the Strategic Reserves at a considerable losss. Brilliant. That will help keep the price down low.
Great choice. Best colleges and universities in the country at your doorstep. Upper management types can commute with high speed Acela service. Best sports teams in the country as a bonus.
They have been doing the manpower reduction thing, but the subsequent chaos that these moves bring end up costing in the end. The Jay mill just made headlines here in Maine with a bad chemical fire. In a complex production process like they have at Jay, chaos is not a good thing... unplanned bad things can happen.
Paper is sold by weight. Actually heavier weight products are normally lower cost to produce as the production rates are higher. The company is overleveraged so cannot bear the costs of rebuilding production machines to make different products. Try breaking into a new market such as packaging, Box producers such as IP are integrated from the Paper Machine to the folding box plant. Ditto for Tissue products. The existing large tissue manufacturers claim space on customer shelves and have the technology and know how honed from many years in the business. Low volume high profit margin specialties are suited to much smaller production lines and require extensive R&D, technical, and marketing support. I do not see much hope here that Verso can pull the rabbit out of the hat. This is basically a Zombie business now. Unable to compete with the lowest cost producers in their markets and not having the resources to break into new markets.
Well done. Not perfect but they did a very nice job and I found it quite entertaining while making a nice connect to the previous movies.
Not me. I always have been a loyal GM customer, but those days may be nearing an end. Time to go to Toyota or Honda whose vehicles are more American made that GM.
Well folks, I have received nothing but thumbs down for my realistic predictions of trouble for VRS. You are down to 2 cents a share now. Still a good buy? Think not. Bankruptcy is a given at this point.
I hate to say I told you so, but the current news is bearing out my prediction of BK. Wishful thinking will not pull this company out of the ditch.