Longueuil, Québec, Canada, 10 May 2010 – SFK Pulp Fund (TSX: SFK.UN) hereby notifies unitholders of the Fund that, if the unitholders approve, at the annual and special meeting of the Fund to be held 19 May 2010, the previously announced plan of arrangement pursuant to which the Fund’s income trust structure will be reorganized into a corporation to be named "Fibrek Inc.," the date of presentation of the application for a final order before the Superior Court of Québec with respect to the conversion is set to May 20, 2010, rather than 21 May 2010, as originally scheduled.
If the final order is obtained on 20 May 2010, in form and substance satisfactory to the Fund and all other conditions set forth in the arrangement agreement are satisfied or waived, the Fund could complete the conversion as early as 25 May 2010. On completion of the conversion, units of the Fund held by the unitholders will be transferred to Fibrek Inc. in consideration for common shares of Fibrek on the basis of one common share for each unit so transferred. The holders of the Fund’s 7% extendible convertible unsecured subordinated debentures will be entitled to receive common shares rather than units on conversion of such debentures, on the same conversion basis as units were previously issuable on conversion thereof, being CAD 4.80 per unit.
SFK Pulp (TSX: SFK.UN), a leader in the production and distribution of high-quality virgin and recycled kraft pulp, operates three mills, one in Saint-Félicien, Québec, Canada; one in Fairmont, West Virginia, and one in Menominee, Michigan, USA. The SFK Pulp workforce totals a little more than 500 employees. The company's annual production capacity is approximately 745,000 metric tons. The Saint-Félicien mill provides northern bleached softwood kraft (NBSK) pulp to various sectors of the paper industry in Canada, the United States, and Europe, for use in the production of specialized products. The Fairmont and Menominee mills manufacture air-dried recycled bleached kraft (RBK) pulp and primarily supply manufacturers of fine uncoated paper, household paper for commercial and industrial uses, and coated paper in the United States.