Fraser Seeks Court Approval for Sale of Specialty Papers Business
Dec. 16, 2009 - Reuters reported that court papers showed Fraser Papers Inc. yesterday sought court approval to sell assets of its specialty papers business to Brookfield Asset Management for $185 million.
According to Reuters, "Brookfield will be the stalking horse bidder and set the floor at a bankruptcy auction, which will be open to higher and better offers for the assets."
Terms of the deal also include a $2 million termination fee payable to Brookfield if Fraser Papers decides to accept a bid from another party, the Reuters news report said.
A hearing on the matter is scheduled for Jan. 15.
Fraser indicated that it would use proceeds from the sale to pay down specific debt.