A national search is underway to replace the chief executive of Verso Corp.

The Memphis-based paper company announced Monday that David J Paterson, CEO and president, will step down from day-to-day management and become chairman of the board once the company emerges from Chapter 11 bankruptcy.

The company, which employs roughly 500 people at its Androscoggin mill in Jay, filed for bankruptcy in January. Like many other U.S. manufacturers of paper, Verso was hit by declining demand for its coated papers and shifting global markets. It expects to emerge from bankruptcy next month, according to filings with the U.S. Securities and Exchange Commission.

“Dave Paterson has been a stalwart as Verso’s president and chief executive officer over the past four years,” said Scott Kleinman, Verso’s board chair, in a release. “During this period of unprecedented upheaval in the printing and writing papers industry, Dave has provided insightful vision and steady, reliable leadership for Verso. His contributions in managing a business with constrained liquidity have been particularly valuable and appreciated as Verso has dealt head on with the financial challenges of our industry and company. Due in no small measure to Dave’s substantial efforts, Verso now is poised to emerge from a fully consensual Chapter 11 reorganization as a stronger competitor with a financially sustainable capital structure.”

The company filed for bankruptcy in Delaware on Jan. 26 to eliminate $2.4 billion of debt. To stem the loss of revenue, it sold off its unprofitable Bucksport mill in 2014, eliminating 500 jobs. The move was part of a complicated $1.4 billion deal that involved the acquisition and then sale of the former NewPage mill in Rumford in January of last year. That mill is now owned by Canada-based Catalyst Paper.

At the conclusion of the NewPage deal, Verso had about $3.5 billion in annual sales and about 5,800 employees in eight mills across six states. In its bankruptcy filing, the company reported gross revenues of about $2.4 billion for the first three quarters of 2015.

In a separate SEC filing Monday, the company announced it was raising another $575 million to help it pay transaction costs associated with the bankruptcy. As a result of the reorganization, the company expects to have a stronger credit profile and increased financial flexibility. New common stock will be issued to creditors who previously owned Verso and NewPage pre-petition secured debt.

The company also said in its SEC filing that it will seek a product mix of more profitable grades of paper, such as specialty grades, post-bankruptcy. Verso is the largest North American coated paper producer.

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