Click here for Pulp & Paper Radio International
The Paperitalo Library
Free Downloads
My Profile
Tembec Receives USD 242 Million Of Its U.S. Duty Deposits
Temiscaming, Quebec, Canada, 30 October 2006 -– Tembec confirmed today that it has received a payment of USD 242 million pertaining to softwood lumber duty deposits made by the company to U.S. Customs since May 2002.

The funds were advanced by Export Development Corporation (EDC) as part of a financing transaction made possible by the 2006 Softwood Lumber Agreement between Canada and the United States. The agreement, which came into force on 12 October, provides for the return of approximately 82% of the U.S. dollar value of duties deposited by the company. The purchase by EDC of the duties to be refunded eliminates the waiting period anticipated for U.S. Customs to process the refunds.

"We are pleased to have received these monies in a timely manner," said James Lopez, Tembec's president and CEO. "The funds will serve to reduce our debt and increase liquidity. They will also allow us to put even greater focus on the key operational and financial issues that will continue to drive the company's recovery plan."

The amount received from EDC represents substantially all of the funds that are expected to be returned to the company. The positive effect of refunded duties will be recorded in the company's December 2006 quarterly financial results.

Tembec is a large, diversified, and integrated forest products company. With operations principally located in North America and in France, the company employs approximately 10,000 people. Tembec's common shares are listed on the Toronto Stock Exchange under the symbol TBC. Additional information on Tembec is available on its Web site at www.tembec.com


Related Articles:

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: