Displaying items by tag: Fraser Papers Inc

At a demonstration organized by retired employees of the Fraser Papers mill in Thurso, Dave Coles, president of the Communications, Energy and Paperworkers Union of Canada, said the union will "take all possible legal and political actions to ensure that there is justice for Fraser Papers retirees." Coles said that the union's lawyers are examining grounds for a civil suit against the company over the administration of the pension plan.

"We believe that our retirees who lost 35% of their pensions are victims of mismanagement by this company, and we fully intend to ensure that they are held accountable for their actions," said Coles.

Fraser Papers, which is owned by Brookfield Asset Management, placed itself under the protection of the Companies' Creditors Arrangement Act (CCAA) last year. According to CEP, it was not obliged to pay into the pension plan to return it to solvency. From the outset, the union has denounced the fact that Fraser Papers has been "casting off all its obligations."

Fortress Paper purchased the Thurso mill while Fraser Papers was under creditor protection, and Fraser's Edmundston, N.B. mill was sold to Twin Rivers Paper Co.

In total, over 800 retired employees were affected when ownership of the kraft pulp mill in Thurso passed from MacLaren, to Noranda Forest and then to Fraser Papers.

Fraser Papers Inc. (together with its subsidiaries, “Fraser Papers” or the “Company”) announced that its subsidiary Fraser N.H. LLC, has reached an agreement to sell substantially all of its assets to an investment fund managed by MerchantBanc, LLC, of Manchester, NH. Financial terms of the transaction were not disclosed.

The paper mill in Gorham, New Hampshire currently operates three paper machines and produced 80,000 tons of uncoated freesheet papers and 37,000 tons of towel products in 2009. The transaction is expected to close in late July and is subject to approval of the Ontario Superior Court of Justice (Commercial List) and the United States Bankruptcy Court for the District of Delaware.

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 by the court to July 9, 2010.

* * * * * * * *

For more information, please visit www.fraserpapers.com or contact:

Fraser Papers Inc. (“Fraser Papers” or the “Company”) announced today the appointment of Glen McMillan as Chief Restructuring Officer of the Company. Mr. McMillan will report to the Board of Directors and will oversee the completion of the restructuring of Fraser Papers and its subsidiaries under the Companies’ Creditors Arrangement Act (“CCAA”) and Chapter 15 of the U.S. Bankruptcy Code. Mr. Peter Gordon, the Company’s Chief Executive Officer, resigned effective May 14, 2010, but will remain on the Board of Directors of Fraser Papers to assist in the remaining steps of the restructuring process.

On June 18, 2009, citing continued operating losses, weak markets for pulp and lumber, impending debt repayments and significant pension funding obligations, the Company filed for creditor protection under the CCAA in Canada and Chapter 15 in the U.S.

On April 28, 2010, the Company sold its specialty papers business to Twin Rivers Paper Company, a newly incorporated company owned by its creditors. On April 30, Fraser Papers sold its hardwood pulp mill in Thurso, Québec, to Fortress Specialty Cellulose Inc. The Company is currently in the process of selling its remaining assets, including the Gorham, New Hampshire paper mill and its two lumbermills in northern Maine. Once the remaining assets are sold, the Company intends to file a Plan of Arrangement for consideration by its creditors.

* * * * * * * *

For more information, please visit www.fraserpapers.com or contact:

Glen McMillan
Chief Restructuring Officer
(416) 359-8635
This email address is being protected from spambots. You need JavaScript enabled to view it.