Fraser Papers selling U.S. assets as well to pay creditors
May 18, 2010 By Pulp & Paper Canada
Fraser Papers has completed the sale of its two Canadian mills, located at Thurso, Que. and Edmunston, N.B., i…
Fraser Papers has completed the sale of its two Canadian mills, located at Thurso, Que. and Edmunston, N.B., in two separate transactions, leaving the insolvent paper company with no Canadian pulp and paper operations. Once the company sells its remaining U.S. assets, the company will use the proceeds to settle the remaining secured claims, prior to distributing any remaining proceeds to unsecured creditors.
Glen McMillan has taken the reins as Chief Restructuring Officer. Peter Gordon, the company’s Chief Executive Officer, resigned effective May 14, but will remain on the Board of Directors of Fraser Papers to assist in the remaining steps of the restructuring process. McMillan will oversee the completion of the restructuring of Fraser Papers and its subsidiaries under the Companies’ Creditors Arrangement Act (CCAA) and Chapter 15 of the U.S. Bankruptcy Code.
On April 28, the company sold its specialty papers business to Twin Rivers Paper Company, a newly incorporated company owned by its creditors. On April 30, Fraser Papers sold its hardwood pulp mill in Thurso, Quebec, to Fortress Specialty Cellulose Inc. The company is currently in the process of selling its remaining assets, including the Gorham, New Hampshire paper mill and its two lumbermills in northern Maine.
Fraser Papers filed for creditor protection on June 18, 2009, citing continued operating losses, weak markets for pulp and lumber, impending debt repayments and significant pension funding obligations.
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