Creditors Decline Support for Fraser Papers' Restructuring Plan
 Print this article | Send to Colleague
Fraser Papers Inc., Toronto, Ont., Canada, and its subsidiaries announced that a meeting of creditors was held this week in Toronto to vote on the consolidated plan of compromise or arrangement filed with the Ontario court overseeing its restructuring proceedings under the Companies' Creditors Arrangement Act (CCAA) of Canada.
Despite the support of PricewaterhouseCoopers, the court-appointed monitor, the company did not receive the sufficient support from creditors at the meeting. As a result, Fraser will not be implementing the plan.
Under criteria set out in the CCAA, the plan required approval of the majority of creditors in number and 66 2/3% by dollar value of claims filed by creditors. The company reported that 98.4% of creditors voted in favor of the plan. However only 41.7% of claims based on dollar value supported the plan, which is below the required level for plan approval.
During the meeting, the monitor indicated that implementation of the plan was expected to result in estimated recoveries of some 19% - 20%, on an undiscounted basis.
|
|
