Fraser Creditors Approve Restructuring Plan
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Fraser Papers Inc., Toronto, Ont., Canada, and its subsidiaries announced this week that creditors of the company approved an amended consolidated plan of compromise and arrangement at a meeting of creditors held in Toronto. The amended plan was filed with the Ontario court overseeing Fraser Papers' restructuring proceedings under the Companies' Creditors Arrangement Act (CCAA) of Canada on January 28, and was supported by PricewaterhouseCoopers, the court-appointed monitor and other significant stakeholders.
The amended plan was supported by 94.7% of the votes (in number) represented at the meeting and 75.3% of the value of claims who voted. Under criteria set out in the CCAA, the amended plan required approval of the majority of creditors in number and 66 2/3% of the dollar value of claims voting at the meeting.
The amended plan contemplates the distribution of all proceeds of the sale of the company's assets to unsecured creditors, once all secured claims are paid in full.
As a result of the approval, the company intends to appear before the Ontario court on February 10 and the U.S.court on February 11 to seek necessary approvals to implement the amended plan.
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