Norske Skogindustrier : Update on the recapitalization process

2017-06-14

Norske Skog has received significant engagement from debtholders, and continued support for the transaction structure. The exchange offer has not yet achieved adequate level of acceptance. The Board has thus decided to amend certain terms of the exchange offers and extend the timeline to allow for prudent diligence and on-going constructive discussion between the stakeholders. The Board has also decided to use the 30-day interest payment grace period on the existing 2019 senior secured notes (SSN) to support the operating business.

'There is still strong support for the recapitalization transaction structure and for equitizing all junior debt, but the value allocation across creditor classes remains challenging. We are constructively working with our various debtholders on finding a solution that protects value for all stakeholders,' said Mr. Lars P.S. Sperre, President and CEO of Norske Skog.

As of 13 June 2017, the exchange offers and consent solicitations announced on 2 June 2017 had received significant engagement from debtholders, but not yet reached the adequate level of acceptance. The board of Norske Skog has thus decided to amend the terms of the exchange offers and consent solicitations to extend the acceptance and consent deadline until 12 July 2017 and such that the higher amount of consideration available for an early acceptance ('early bird') now also is available to all holders until the final deadline.

'To ensure that this process does not impact the operational business of Norske Skog, we have decided to use the interest payment grace period whilst discussions continue,' said Mr. Lars P.S. Sperre, President and CEO of Norske Skog.

Norske Skog will use the 30-day SSN interest payment grace period to continue constructive discussions with all stakeholders regarding its ongoing effort to achieve the consensual recapitalization transaction contemplated by the exchange offers and consent solicitations. The board will continue to follow and evaluate the situation thoroughly before the end of the grace period. The final acceptance and consent deadline has been extended to 12 July 2017 (at 23.59 New York time).

'Norske Skog is a vital and sustainable group with 7 competitive business units with an acceptable operational cash flow but too much is consumed by interest payments and not to develop existing and new, green business. A recapitalization will benefit the company and all stakeholder groups by substantially reducing the debt and interest expense and improve the equity value significantly,' concluded Mr. Lars P.S. Sperre, President and CEO of Norske Skog.

This information is not for distribution in the United States and is subject of the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.

Norske Skog Communications and Public Affairs For further information:

Norske Skog media: Vice President Corporate Communication Carsten Dybevig Mob: [phone]

Norske Skog financial markets: Vice President Investor Relations Tom Rogn Mob: [phone]

This press release may include projections and other 'forward- looking' statements within the meaning of applicable securities laws. Any such projections or statements reflect the current views of Norske Skogindustrier ASA or its subsidiaries ('Norske Skog') about further events and financial performance. Although Norske Skog believes that these views and assumptions are reasonable, the statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. No assurances can be given that such events or performance will occur as projected and actual results may differ materially from these projections.

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