Fraser Papers Signs Agreement to Sell Subsidiary to MerchantBanc
Toronto, Ontario, Canada, 25 May 2010 – Fraser Papers Inc. announced that its subsidiary, Fraser N.H. LLC, has reached an agreement to sell substantially all of its assets to an investment fund managed by MerchantBanc, LLC, of Manchester, New Hampshire, USA. Financial terms of the transaction were not disclosed.
The paper mill in Gorham, New Hampshire, currently operates three paper machines and produced 80,000 tons of uncoated freesheet papers and 37,000 tons of towel products in 2009.
The transaction is expected to close in late July and is subject to approval of the Ontario Superior Court of Justice (Commercial List) and the United States Bankruptcy Court for the District of Delaware.
Fraser Papers remains under creditor protection pursuant to the provisions of the Companies’ Creditors Arrangement Act (CCAA), with its stay of proceedings having been extended by the court to 09 July 2010.