Miamisburg, Ohio—NewPage Corp., which has a debt load in excess of $3 billion, has filed for Chapter 11 bankruptcy protection. The paper producer is owned by private equity fund Cerberus Capital Management. NewPage's Canadian subsidiary, NewPage Port Hawkesbury Corp., has also filed for protection under the Companies' Creditors Arrangement Act of Canada.
To allow NewPage to continue its day-to-day operations, the company has obtained debtor-in-possession financing, led by J.P. Morgan, of about $600 million. Like other paper manufacturers, NewPage has suffered from slackening demand and high raw materials costs.