Fraser Papers Files Amended Restructuring Plan
 Print this article | Send to Colleague
Fraser Papers, Toronto, Ont., Canada, this past week filed an amended consolidated plan of compromise and arrangement with the Ontario Court overseeing its restructuring proceedings under the Companies' Creditors Arrangement Act (CCAA) of Canada. These materials will also be filed with the U.S. Court in Delaware, which oversees the company's ancillary proceedings under Chapter 15 of the U.S. Bankruptcy Code.
Earlier this week (February 1), Fraser sought an order authorizing it to hold a meeting of creditors on February 8, at which time the creditors of the company will vote on the amended plan. If the amended plan is approved by creditors, the company intends to appear before the Ontario Court on February 10 and the U.S. Court on February 11 to seek the necessary court approvals to implement it.
On January 10, creditors rejected a plan of arrangement that had been proposed by the company despite 98.4% of all creditors voting in support of it. After the meeting on January 10, the company commenced discussions with various stakeholders in an effort to obtain support for an amended plan.
The amended plan includes a commitment from Brookfield Asset Management to serve as sponsor by purchasing the company's remaining operating assets (consisting of two lumber mills in Northern Maine) through the acquisition of Fraser Papers' U.S. subsidiaries for cash proceeds of approximately $12.4 million, subject to an adjustment for closing working capital.
Subject to sufficient cash being available to make payments, the amended plan provides for a cash distribution for each unsecured claim that has been accepted by the court-appointed monitor, up to the lesser of: a) the amount of each unsecured claim, and b) $500.00.
|
|
