On January 22, 2021, Verso’s Board of Directors approved management’s decision to not restart its paper mill in Duluth, Minnesota (the “Duluth Mill”) and to continue with its efforts to sell the mill. This decision was made in response to the continued accelerated decline in printing and writing paper demand resulting from the COVID-19 pandemic. The decision to not restart the Duluth Mill, which has been idle since July 2020, will reduce Verso’s total annual production capacity by approximately 270,000 tons of supercalendered paper. Verso furloughed approximately 190 employees when the mill was idled in July 2020, while a smaller group of approximately 35 employees remained at the mill to maintain critical systems.