Fraser Papers Terminates Agreement to Sell Mill
Toronto, Ontario, Canada, 28 September 2010 – Fraser Papers Inc. has terminated the agreement to sell its paper mill in Gorham, New Hampshire. The company announced that the purchaser could not secure sufficient financing to complete the transaction.
The company has begun contacting other parties to determine their interest in acquiring the mill.
Fraser Papers also announced that it will close the mill indefinitely while the company continues its efforts to sell the mill. The company plans to shut down the Gorham mill indefinitely on or about 13 October 2010, depending on whether acceptable orders can be obtained. The company noted that the shutdown is due to current market conditions and is in no way reflective of the outstanding dedication and commitment of the employees at the mill who have worked tirelessly to ensure Fraser Papers’ paper products are of the highest quality.
In conjunction with the anticipated shutdown of the of the Gorham mill, Fraser Papers has provided notice to the employees of the Gorham mill under the Worker Adjustment and Retraining Notification (WARN) Act.
Fraser Papers remains under creditor protection pursuant to the provisions of the Companies’ Creditors Arrangement Act (CCAA) in Canada and Chapter 15 of the United States Bankruptcy Code in the United States.