On August 2, 2012, Verso Paper Corp. ("Verso") announced that it has completed a comprehensive assessment of the damage resulting from the fire and explosion at its paper mill in Sartell, Minnesota, and has determined that it will permanently close the mill. The permanent closure of the Sartell Mill will reduce Verso's annual coated groundwood capacity by 180,000 tons, or approximately 20%, and will eliminate approximately 35,000 tons annually of supercalendered paper capacity. The Sartell Mill currently employs approximately 265 employees.

The mill closure will result in an aggregate pre-tax charge to earnings of approximately $114 million, which is expected to occur primarily in the third quarter of 2012. This includes approximately $19 million for severance and benefit costs; approximately $81 million in non-cash charges primarily related to the impairment of property, plant and equipment; and approximately $14 million related to other costs. The severance and other shutdown costs require the outlay of cash, which is expected to occur primarily in the third quarter of 2012. Settlement negotiations regarding this loss claim with our insurance carrier are continuing and we expect resolution in the coming months.

Costs associated with shutdown activities are based on currently available information and reflect management's best estimates; accordingly, actual cash costs and non-cash charges and their timing may differ from the projections stated above.

A copy of the press release issued by Verso on August 2, 2012, is included as Exhibit 99.1 to this report.

(d) Exhibits

The following exhibit is included with this report:

Exhibit
Number  Description of Exhibit

 99.1   Press release issued by Verso Paper Corp. on August 2, 2012.