At a hearing on February 10, the Ontario Superior Court of Justice, which is overseeing the proceedings under the Companies' Creditor Arrangement Act (CCAA) in Canada, issued orders sanctioning the Plan and approving the transaction under which the company has agreed to sell its subsidiaries in the U.S. to the Plan sponsor, Brookfield Asset Management. At a hearing on February 11, the U.S. Bankruptcy Court for the District of Delaware, which is overseeing the proceedings under Chapter 15 of the U.S. Bankruptcy Code, issued a recognition order recognizing the Canadian orders, sanctioning the Plan and approving the transaction.
Following approvals by the Canadian Court and the U.S. Court, the company said that it began working diligently to complete the transaction and implement the Plan on February 15. As part of the implementation of the Plan, the company distributed approximately $44 million in unsecured notes issued by Twin Rivers Paper Co. and a 49% common equity interest in Twin Rivers to Fraser Papers' creditors.
Fraser Papers Inc. continues under creditor protection while it finalizes its restructuring activities, including settling unresolved claims, completing the sale of certain assets, and distributing all residual cash to creditors after paying the remaining costs of the proceedings. Fraser Papers expects to complete these activities before its stay period expires on May 2.
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