Each issue of PaperMoney is approximately 500 fact filled pages.
Logout
Click here for Pulp & Paper Radio International
Items just for you
New publication added! Advertising Arguments 2015 book
Free Downloads
Search
My Profile
Login
Management Side
Technical Side
Fraser Papers Proceeds on Offer to Sell Its Specialy Papers Business
Print

Toronto, Ontario, Canada, 24 February 2010 – Fraser Papers Inc. announced today that it has cleared the remaining material conditions under an offer to purchase its specialty papers business (the agreement). The company, the Canadian Energy and Paperworkers Union of Canada (CEP), the government of New Brunswick, and other stakeholders agreed to the broad terms under which Fraser Papers will proceed to close the sale of its specialty papers business to a company sponsored by the secured creditors of Fraser Papers (Newco). The agreement included proposed changes to the collective agreements at the company’s Edmundston pulp and energy complex, which will require ratification on or before 10 March 2010.

The company filed the agreement with the Ontario Superior Court of Justice today. The company will work diligently with its secured creditors and Newco to close the sale of the specialty papers business before 31 March 2010. The final agreement (the purchase agreement) will be subject to court approval before closing.

Under the terms of the purchase agreement, the unsecured creditors of Fraser Papers will receive promissory notes and a 49% common equity interest in the new company. Brookfield Asset Management Inc., a secured creditor, has agreed to convert its secured claim against the company into a 51% common equity interest in Newco and the government of New Brunswick has agreed to convert its CAD 35 million secured loan plus accrued interest into equity in the form of preferred shares of the new company. Newco and the company are currently negotiating a CAD 50 million revolving credit facility with CIT Business Credit Canada Inc., which will provide Newco with operating liquidity.

The company also announced today that the court has granted a further extension of the initial order under which Fraser Papers, was granted creditor protection under the Companies’ Creditors Arrangement Act (CCAA). This extension is through 09 April 2010, and was supported by PricewaterhouseCoopers Inc., the court appointed monitor of the company’s CCAA process.

Fraser Papers is an integrated specialty paper company that produces a broad range of specialty packaging and printing papers. The company has operations in New Brunswick and Québec in Canada, and in Maine and New Hampshire in the United States. For more information, visit the Fraser Papers Web site at www.fraserpapers.com.



Powered by Bondware
News Publishing Software

The browser you are using is outdated!

You may not be getting all you can out of your browsing experience
and may be open to security risks!

Consider upgrading to the latest version of your browser or choose on below: