Verso Paper Receives $40M in Advance Insurance Settlement

Updated: 11/13/2012 2:29 PM By: Jennie Olson

Verso Paper Corp. has received about $40 million in insurance money from the explosion that injured four people and killed an employee over Memorial Day weekend. The explosion caused the closure of the Sartell mill, which displaced 260 workers.

According to the city administrator, the company is expecting an additional $44 million settlement.

So far, the company has paid about $16.3 million in severance and benefits to the displaced workers. More payments are expected to be made.

Costs from the explosion – including severance packages and environmental remediation – are expected to be between $30-$40 million. The company reported a net loss of $104.7 million in the third quarter, according to the city administrator.

According to a statement from Verso Chief Financial Officer Robert Mundy, the company is still determining the future of the site.