Norske Skog is in better financial shape following wide acceptance of its notes exchange offer.

The newsprint maker announced on March 18, an amended exchange offer to holders of its senior notes due in 2017, with the intention of extending maturity, reducing debt and annual cash interest payments, and strengthening of its balance sheet.

Following its expiry this week, the company says note holders of about 77 per cent of their value have said they will back the exchange offer at a noteholder meeting on Monday.

Last month, Norske Skog agreed financing arrangements with GSO Capital Partners and Cyrus Capital Partners aimed at strengthening the company's liquidity position. In addition, the two provided a new securitisation facility of about 100 million Euros, secured by the receivables and inventory.

President and chief executive Sven Ombudstvedt says the transactions have "significantly improved" liquidity, strengthened the balance sheet and extended the company's maturity profile. "We will now concentrate our efforts in developing and improving our business units," he says.