Fraser Papers Inc.

Fraser Papers Inc.

December 07, 2010 09:32 ET

Fraser Papers Obtains Court Approval to Sell New Hampshire Paper Mill

TORONTO, ONTARIO--(Marketwire - Dec. 7, 2010) - Fraser Papers Inc. (together with its subsidiaries, "Fraser Papers" or the "Company") announced today that it has received the necessary court approvals to complete the sale of the Company's paper mill in Gorham, New Hampshire to Counsel RB Capital, LLC ("Counsel"). The Company signed an agreement with Counsel on November 27, 2010.

The transaction was approved by the Ontario Superior Court of Justice (Commercial List) on December 3, 2010. The Company and Counsel have agreed that the transaction will be completed on December 16, 2010.

Prior to it being closed indefinitely on October 13, 2010, the paper mill in Gorham, New Hampshire operated three paper machines and employed approximately 240 people. During 2009, the Gorham mill produced 80,000 tons of uncoated freesheet papers and 37,000 tons of towel products.

Fraser Papers remains under creditor protection pursuant to the provisions of the Companies' Creditors Arrangement Act ("CCAA"), with its stay of proceedings having been extended most recently to February 28, 2011.

For more information, please 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 sale of the Company's Gorham paper mill, including the anticipated closing date and certain terms of the sale. The words, "to", "is" (in certain circumstances), "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 sale of the New Hampshire paper mill to differ materially from those set forth in the forward-looking statements include, the inability to complete the necessary documentation to effect the transaction, clear any closing conditions which exist in the agreement reached between Fraser Papers and the purchaser, unforeseen administrative, legal, 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.

Contact Information