Fraser Papers Inc.

Fraser Papers Inc.

November 30, 2010 11:41 ET

Fraser Papers Signs Agreement to Sell New Hampshire Paper Mill

TORONTO, ONTARIO--(Marketwire - Nov. 30, 2010) - Fraser Papers Inc. (together with its subsidiaries, "Fraser Papers" or the "Company") announced today that it had been advised by M&M Consulting and Contracting ("M&M") that M&M would not be completing the acquisition of the Company's paper mill in Gorham, New Hampshire on November 30th as scheduled.

The Company also announced that it had reached an agreement with Counsel RB Capital to sell the Gorham mill by way of a back-up bid. The agreement with Counsel RB Capital is subject to certain conditions, including court approval, and is scheduled to close on December 8, 2010.

Until it 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 to February 28, 2011.

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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), "scheduled", "would" 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 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

  • Fraser Papers Inc.
    Glen McMillan
    Chief Restructuring Officer
    (416) 359-8635
    Fraser Papers Inc.
    Bill Manzer
    Senior Vice President, Business Strategy and Projects
    (207) 523-2364