Fraser Papers Gets Court OK for Sale of Gorham, NH Mill

Fraser Papers' Gorham, NH Mill

Dec. 7, 2010 - Fraser Papers today said that it has received the necessary court approvals to complete the sale of its paper mill in Gorham, New Hampshire to Counsel RB Capital, LLC (Counsel).

Fraser Papers signed an agreement with Counsel on November 27, 2010, and the deal was approved by the Ontario Superior Court of Justice (Commercial List) on December 3, 2010.

Fraser Papers and Counsel have agreed that the transaction will be completed on December 16, 2010.

Prior to it being closed indefinitely on October 13, 2010, the paper mill in Gorham, New Hampshire operated three paper machines and employed approximately 240 people.

During 2009, the Gorham mill produced 80,000 tons of uncoated freesheet papers and 37,000 tons of towel products, Fraser Papers said.

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 most recently to February 28, 2011.

SOURCE: Fraser Papers Inc.