Fraser Papers Inc.
TSX : FPS

Fraser Papers Inc.

July 15, 2009 18:05 ET

Fraser Papers Announces Extension of CCAA Protection

TORONTO, ONTARIO--(Marketwire - July 15, 2009) - Fraser Papers Inc. ("Fraser Papers" or the "Company") announced today that that the Ontario Superior Court of Justice (the "Court") has granted an extension of the initial Order under which Fraser Papers, together with its subsidiaries, was granted creditor protection under the Companies' Creditors Arrangement Act (Canada) (the "CCAA"). The extension is for 90 days through October 16, 2009 and was supported by PricewaterhouseCoopers Inc., the Court appointed Monitor of the Company's CCAA process.

Fraser Papers also announced that on July 13, 2009, the U.S. Bankruptcy Court for the District of Delaware granted the Company's motion for a recognition order recognizing the CCAA proceeding as a foreign main proceeding and granting ancillary relief, including a stay of proceedings.

The Court proceedings today also approved the terms of additional financing from the Government of New Brunswick which will be targeted toward the completion of the modernization of the Company's lumbermill in Plaster Rock, New Brunswick. Fraser Papers expects construction to commence in the coming weeks with completion targeted for the end of the third quarter.

The Court also granted Fraser Papers' request to commence a claims process to establish creditor claims that will require all creditors to submit claims to the Company for consideration. Claims under this process must be presented to the Company on or before September 30, 2009. Proof of claim information will be sent to creditors within the next 30 days and will be available on the Company's web site (www.fraserpapers.com) and the monitor's website (www.pwc.com/car-fraserpapers).

Fraser Papers is an integrated specialty paper company that produces a broad range of specialty packaging and printing papers. The Company has operations in New Brunswick, Maine, New Hampshire and Quebec. For more information, visit the Fraser Papers web site at www.fraserpapers.com.

Note: This press release contains forward-looking information and forward-looking statements within the meaning of Canadian provincial securities laws. These forward-looking statements include, among others, statements with respect to the modernization of the Company's Plaster Rock lumbermill and the creditor claims process. The words "target", "toward", "expect", "will", variations of those words and other words and expressions which may be predictions of or indicate future events and trends and which do not relate to historical matters identify forward-looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements. Factors that could cause actual results of the restructuring to differ materially from those set forth in the forward-looking statements include: general economic conditions; demand for the Company's products; unforeseen administrative, legal, operational or production issues; cost of fibre, energy and chemicals; sales and marketing performance; union negotiations; and, other risks detailed from time to time in the documents filed by the Company with the securities regulators in Canada. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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