Fraser Papers Gets Court OK for Sale of Specialty Papers Business
April 7, 2010 (Press Release) - Fraser Papers Inc. (together with its subsidiaries, "Fraser Papers" or the "Company") announced today that it obtained final approval on April 6 from the Ontario Superior Court of Justice (Commercial List) to complete the sale of its specialty papers business to Twin Rivers Paper Company Inc. ("Twin Rivers") (the "Transaction"). At a hearing this afternoon in the United States Bankruptcy Court for the District of Delaware, the court approved recognition of the Canadian Court Order and the sale of the U.S. assets.
Under the terms of the Transaction, the creditors of Fraser Papers will receive promissory notes and a 49% common equity interest in the purchaser, Twin Rivers. Brookfield Asset Management Inc., a secured creditor, has agreed to convert its secured claim against the Company into a 51% common equity interest in Twin Rivers and the Government of New Brunswick has agreed to convert its $35 million secured loan and accrued interest into preferred shares of Twin Rivers.
The Company and Twin Rivers expect to close the Transaction within the next few weeks.
The Company also announced today that the Court has granted a further extension of the initial Order under which Fraser Papers was granted creditor protection under the Companies' Creditors Arrangement Act ("CCAA"). This extension is through July 9, 2010 and was supported by PricewaterhouseCoopers Inc., the Court appointed Monitor of the Company's CCAA process.
Fraser Papers is an integrated specialty paper company that produces a broad range of specialty packaging and printing papers. The Company has operations in New Brunswick, Maine, New Hampshire and Quebec.
SOURCE: Fraser Papers