Support for Tembec’s recapitalization plan
January 1, 2008 By Pulp & Paper Canada
TEMISCAMING, QC — Executive members of Communications, Energy and Paperworkers Union of Canada (CEP) Local 233 sta…
TEMISCAMING, QC — Executive members of Communications, Energy and Paperworkers Union of Canada (CEP) Local 233 stated their support for the Tembec recapitalization plan, announced in December. Local 233 represents the employees of the Temiscaming site, the site were Tembec started its first operations back in 1973. At that time, several employees took an active role in a successful campaign to keep the mill alive, including financial participation in the ownership of the mill through an employee trust. As the company grew and became a true public company, a great number of employees at this site became shareholders of the Company through the conversion of the initial trust units into shares, as well as through the Company’s employee stock purchase plan.
“We both recognize the need for and support the Company’s recapitalization plan. This is a challenging time for the industry overall and for Tembec in particular. Employees have worked hard with management to improve safety, costs, productivity and quality. Local 233 recognized that this was a serious situation and early last year, our members made concessions to help the company fighting against the perfect storm,” said Luc Rossignol, president of Local 233.
Tembec has also announced that it has gained additional support for the proposed recapitalization transaction.
Since Tembecs public announcement of the Recapitalization, more noteholders have executed support agreements with Tembec whereby they have agreed to vote in favour of and support the Recapitalization. As of December 31, 2007, noteholders have executed support agreements whereby they have agreed to vote approximately US $774 million of notes in favour of and to support the Recapitalization. Tembec will continue to solicit and obtain further support for the Recapitalization.
Tembec has entered into additional backstop agreements as contemplated in the Key Terms of the Recapitalization announced on December 19, 2007. As of December 31, 2007, Tembec has received commitments from additional backstop parties for substantially the complete amount of the additional backstop.
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