Fraser Papers Inc.

Fraser Papers Inc.

February 15, 2011 13:37 ET

Fraser Papers Implements Restructuring Plan Approved by Creditors and the Courts

TORONTO, ONTARIO--(Marketwire - Feb. 15, 2011) -

(All financial references are in U.S. dollars unless otherwise noted)

Fraser Papers Inc. and its subsidiaries ("Fraser Papers" or the "Company") announced today that the Amended Plan of Arrangement and Compromise (the "Plan"), which was approved by its creditors on February 8, 2011, has been approved by the courts overseeing the Company's creditor protection proceedings.

At a hearing on February 10, 2011, the Ontario Superior Court of Justice (Commercial List), which is overseeing the proceedings under the Companies' Creditor Arrangement Act ("CCAA") in Canada, issued orders (the "Canadian 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 (the "Transaction"). 

At a hearing on February 11, 2011, the U.S. Bankruptcy Court for the District of Delaware, which is overseeing the proceedings under Chapter 15 of the US Bankruptcy Code (the "US Court"), issued a recognition order recognizing the Canadian Orders, sanctioning the Plan and approving the Transaction.

Following the approvals by the Canadian Court and the US Court, the Company began working diligently to complete the Transaction and implement the Plan on February 15, 2011. As part of the implementation of the Plan, the Company distributed approximately $44 million in unsecured notes issued by Twin Rivers Paper Company Inc. ("Twin Rivers") 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, 2011.

All materials related to the Company's restructuring, including the Plan, the Transaction and other related documents, are available on the Monitor's website at www.pwc.com/car-fraserpapers

For more information about the Company, visit 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 distribution of assets under the Amended Plan, the occurrence of court proceedings and the approval of the Amended Plan by the Canadian Court and the US Court. The word "expect" variations thereof 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 and its restructuring to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements. Factors that could cause delays in finalizing the Company's restructuring activities include: unforeseen administrative, legal, transactional, technological, operational; inability to reach agreement with creditors regarding unresolved claims, delays in the sale of assets, unforeseen economic occurrences, actions of creditors, 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 is 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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