Struggling paper giant Norske Skog’s major shareholders GSO and Cyrus Capital Partners are bidding for the removal of three board directors following the company’s major debt and declining demand.

Norske Skog is currently battling to reduce its already eye-watering €1bn debt, and announced last month it planned to restructure it through amending the terms of note holders.

The shareholders have requested an ‘extraordinary general meeting’ which it plans to replace board members Karin Bing Orgland, Siri Beate Hatlen and Ole Enger.

GSO now owns 11 per cent of the company, and the meeting is scheduled to take place by January 7, where, according to Norske Skog, refinancing proposals will be discussed.

[Related: Norske Skog debt restructure]

Norske Skog has released a statement citing the shareholders plans:

“GSO and Cyrus have notified that they will revert with their proposal for new members to the board of directors and new and departing members of the election and remuneration committee, as well as a presentation of their refinancing proposal.”

The board includes five shareholder-elected directors and three selected by employees.

Norske Skog operates two Australian mills, one in Albury, NSW and in Boyer, Tasmania, one in Kawerau, New Zealand and four in Europe.

The company is responsible for supplying approximately 600,000 tonnes of paper to publishers and commercial printers around Australia

Comment below to have your say on this story.

If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.  

Sign up to the Sprinter newsletter