The new consumer products and packaging company, to be spun off through an initial public offering, will be headed by current Georgia-Pacific Chairman-CEO A.D. "Pete" Correll. That company will include a $7 billion global consumer tissue-towel and disposable tableware business, led by the Quilted Northern, Brawny and Dixie brands.
The remaining Georgia-Pacific business will be run by Lee Thomas, who will serve as president-CEO.
News of the deal, in which current Georgia-Pacific bondholders will be permitted to exhange bonds for those of the new consumer products and packaging company, prompted Moody's Investor Services to downgrade Georgia-Pacific's debt to junk status. The deal hinges on Georgia-Pacific's ability to secure the necessary debt and equity financing.