Toronto, Ontario, Canada, 15 July 2009 – Fraser Papers Inc. announced today that that the Ontario Superior Court of Justice has granted an extension of the initial order under which Fraser Papers, together with its subsidiaries, was granted creditor protection under the Companies’ Creditors Arrangement Act (Canada) (the CCAA). The extension is for 90 days, through 16 October 2009, and was supported by PricewaterhouseCoopers Inc., the court-appointed monitor of the company’s CCAA process.
Fraser Papers also announced that on 13 July 2009, the U.S. Bankruptcy Court for the District of Delaware granted the company’s motion for a recognition order recognizing the CCAA proceeding as a foreign main proceeding and granting ancillary relief, including a stay of proceedings.
The court proceedings today also approved the terms of additional financing from the government of New Brunswick that will be targeted toward the completion of the modernization of the company’s lumbermill in Plaster Rock, New Brunswick. Fraser Papers expects construction to commence in the coming weeks with completion targeted for the end of the third quarter.
The court also granted Fraser Papers’ request to commence a claims process to establish creditor claims that will require all creditors to submit claims to the company for consideration. Claims under this process must be presented to the company on or before 30 September 2009. Proof of claim information will be sent to creditors within the next 30 days and will be available on the company’s Web site (www.fraserpapers.com) and the monitor’s Web site (www.pwc.com/car-fraserpapers)
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 Maineand New Hampshire in the United States. For more information, visit the Fraser Papers Web site at www.fraserpapers.com.