Fraser Papers Gets Court Approval for Sale of Specialty Papers Business

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Fraser Papers, Toronto, Ont., Canada, and its subsidiaries today announced that the company obtained final approval this week from the Ontario Superior Court of Justice to complete the sale of its specialty papers business to Twin Rivers Paper Co. At a hearing yesterday afternoon in the U.S. Bankruptcy Court for the District of Delaware, the court approved recognition of the Canadian Court Order and the sale of the U.S. assets. Fraser and Twin Rivers expect to close the Transaction within the next few weeks.

Under the terms of the Transaction, the creditors of Fraser Papers will receive promissory notes and a 49% common equity interest in the purchaser, Twin Rivers. Brookfield Asset Management Inc., a secured creditor, has agreed to convert its secured claim against the company into a 51% common equity interest in Twin Rivers, and the Government of New Brunswick has agreed to convert its $35 million secured loan and accrued interest into preferred shares of Twin Rivers.

Fraser also announced today that the court has granted a further extension of the initial order under which Fraser was granted creditor protection under the Companies' Creditors Arrangement Act (CCAA). This extension is through July 9, and was supported by PricewaterhouseCoopers Inc., the court appointed monitor of the company's CCAA process. Fraser Papers produces a broad range of specialty packaging and printing papers, with operations in New Brunswick, Maine, New Hampshire and Quebec.