Having received no additional offers to purchase its specialty papers business, Fraser Papers Inc. has terminated the bid process and will work toward completing the purchase offer sponsored by the co…
Having received no additional offers to purchase its specialty papers business, Fraser Papers Inc. has terminated the bid process and will work toward completing the purchase offer sponsored by the company’s secured creditors that was signed on December 22, 2009.
Under the terms of the purchase agreement, the unsecured creditors of Fraser Papers will receive ten-year promissory notes and a 49% common equity interest in the new company. Brookfield Asset Management Inc., a secured creditor, will convert its claim into a 51% common equity interest in the new company, while the Government of New Brunswick has agreed to convert its US$35 million secured loan into equity in the form of preferred shares of the new company.
Fraser Papers is an integrated specialty paper company with operations in New Brunswick, Maine, New Hampshire, and Quebec.
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