Fraser Papers Inks Deal to Sell Gorham, NH Paper Mill
Nov. 4, 2010 - Fraser Papers said that its subsidiary Fraser N.H. LLC has reached an agreement to sell substantially all of its assets (Gorham, New Hampshire paper mill) to MM Consulting and Contracting Company LLC.
Financial terms of the transaction were not disclosed.
In May of this year, Fraser Papers had reached an agreement to sell the mill to an investment fund managed by MerchantBanc, LLC, of Manchester, NH. However, Fraser terminated the deal in September after the purchaser could not secure sufficient financing.
Fraser closed the Gorham mill indefinitely on October 13, 2010, citing weak market conditions. The mill had operated three paper machines and employed approximately 240 people prior to its shutdown.
According to Fraser, the Gorham mill in 2009 produced 80,000 tons of uncoated freesheet papers and 37,000 tons of towel products.
Fraser expects the sale to close in early December, subject to approval of the Ontario Superior Court of Justice (Commercial List) and the United States Bankruptcy Court for the District of Delaware.
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 February 28, 2011.
SOURCE: Fraser Papers Inc.
See related story:
Fraser Papers Terminates Deal to Sell Gorham, NH Paper Mill (9/28/2010)