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White Birch Paper: newsprint producer files for creditor protection (March 01, 2010)

The operator of three newsprint mills in Quebec, White Birch Paper Company, has filed for creditor protection …

The operator of three newsprint mills in Quebec, White Birch Paper Company, has filed for creditor protection in Canada and the U.S., to improve its capital structure.
White Birch Paper is the parent company of the F.F. Soucy mill in Rivière-du-Loup, the Stadacona mill in Quebec, and Papier Masson in Gatineau. The company’s U.S. subsidiary, Bear Island Paper Company, also filed for relief under Chapter 11 of the United States Bankruptcy Code.
“This process is about fixing our capital structure,” said Christopher Brant, president. “We remain committed to delivering the highest quality product to our many valued customers, and through this financial restructuring, we believe we will be better positioned to continue to do so well into the future.”
White Birch expects operations to continue as usual during and after the restructuring process.
The company is seeking approval in Canada and the U.S. of a $140 million in debtor-in-possession (DIP) financing.
White Birch Paper is the second largest newsprint producer in North America. It cites a decline in demand for newsprint, combined with a decline in prices, as well as the increased strength of the Canadian dollar, as having a negative impact on its business. AbitibiBowater, another large newsprint producer in North America, is also operating under bankruptcy protection.