The Vancouver Business Thread

[LeftCoaster]

Hey, beat me too it, I was going to post that exact article. nice to have someone else posting in this thread though!

Ontario court approves specialty paper unit sale by Fraser Papers
By The Canadian Press

TORONTO - The Ontario Superior Court has approved the sale of the specialty papers business of Fraser Papers Inc., which has been operating under court protection from creditors.

Under the terms of the sale, the creditors of Fraser Papers will receive promissory notes and a 49 per cent equity interest in the purchaser, Twin Rivers.

Brookfield Asset Management Inc. (TSX:BAM.A), a secured creditor, has agreed to convert its claim against the company into a 51 per cent stake in Twin Rivers, while the New Brunswick government has agreed to convert its $35-million secured loan and accrued interest into preferred shares.

The deal is expect to close within the next few weeks.

Fraser Papers also said Wednesday that the court overseeing its restructuring has extended the company's creditor protection to July 9.

Last month, Fortress Paper Ltd. signed an agreement to acquire a manufacturing facility in Thurso, Que., from Fraser Papers for $3 million.

Vancouver-based Fortress (TSX:FTP), which produces specialty paper, said it intends to spend approximately $153 million to convert the plant into a specialty cellulose operation once the acquisition is complete.

Fraser Papers is an integrated specialty paper company with operations in New Brunswick, Maine, New Hampshire and Quebec.

http://www.canadianbusiness.com/mark...ent=b072095120