Fraser Papers to Seek Court Approval to Sell New Hampshire Paper Mill
June 30, 2010 (Press Release) - Fraser Papers Inc. (together with its subsidiaries, "Fraser Papers" or the "Company") announced today that it will seek court approval of the transaction to sell its paper mill in Gorham, New Hampshire.
Approval will be sought from the Ontario Superior Court of Justice (Commercial List) at a hearing scheduled for July 7, 2010 and from the United States Bankruptcy Court for the District of Delaware at a hearing scheduled for July 14, 2010.
Fraser Papers and the purchaser have agreed to extend the closing date to August 31, 2010 as they continue to make positive progress toward finalizing terms of the transaction.
The paper mill in Gorham, New Hampshire currently operates three paper machines and produced 80,000 tons of uncoated freesheet papers and 37,000 tons of towel products in 2009.
In conjunction with the proposed sale of the of the Gorham mill, Fraser Papers announced that it has provided notice to the employees of the Gorham mill under the Worker Adjustment and Retraining Notification ("WARN") Act. In the event that the Company cannot complete the transaction before August 31, 2010, the Company is reserving its rights with respect to continuing operations at the Gorham mill.
Fraser Papers remains under creditor protection pursuant to the provisions of the Companies' Creditors Arrangement Act ("CCAA"), with its stay of proceedings having been extended by the court to July 9, 2010. At the hearing scheduled for July 7, 2010, the Company expects to, among other things, request an extension of the stay of proceedings.
SOURCE: Fraser Papers Inc.