Fraser Papers Inc.

Fraser Papers Inc.

July 08, 2010 11:36 ET

Fraser Papers Announces Further Extension of CCAA Protection

TORONTO, ONTARIO--(Marketwire - July 8, 2010) - Fraser Papers Inc. ("Fraser Papers" or the "Company") announced today that the Ontario Superior Court of Justice (Commercial List) (the "Court") has granted a further 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"). This extension is through October 29, 2010 and was supported by PricewaterhouseCoopers Inc., the Court appointed Monitor of the Company's CCAA process.

The Company also announced that it has obtained final approval from the Court to complete the sale of its paper mill in Gorham, New Hampshire to an investment fund managed by MerchantBanc, LLC, of Manchester, New Hampshire. Approval will also be sought from the United States Bankruptcy Court for the District of Delaware at a hearing scheduled for July 14, 2010. Fraser Papers expects to complete the sale of the Gorham mill on or before August 31, 2010.

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 sale of the Company's New Hampshire paper mill, including court approval and the closing date. The words "will", "expect", 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 sale of the paper mill to differ materially from those set forth in the forward-looking statements include: unforeseen legal issues, the inability to finalize terms or clear closing conditions, unforeseen administrative or transactional issues, and other risks detailed from time to time in the documents filed by the Company with the securities regulators in Canada. In addition, the Company and its subsidiaries are currently operating under creditor protection laws in Canada and the United States. Many of the Company's plans are subject to the review of commercial courts in Canada and the United States. The Company cannot anticipate when such plans will be the subject of consideration by the commercial courts or, if they are, what impact that consideration will have on the plans or intentions of the Company. 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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