Toronto, Ontario, Canada, 15 February 2011 – Fraser Papers Inc. and its subsidiaries announced today that their amended plan of arrangement and compromise, which was approved by its creditors on 08 February 2011, has been approved by the courts overseeing the company’s creditor protection proceedings.
At a hearing on 10 February 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 sanctioning the plan and approving the transaction under which the company has agreed to sell its subsidiaries in the United States to the plan sponsor, Brookfield Asset Management.
At a hearing on 11 February 2011, the U.S. Bankruptcy Court for the District of Delaware, which is overseeing the proceedings under Chapter 15 of the U.S. Bankruptcy Code, issued a recognition order recognizing the Canadian orders, sanctioning the plan, and approving the transaction.
Following the approvals by the Canadian Court and the U.S. Court, the company began working diligently to complete the transaction and implement the plan on 15 February 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. 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 02 May 2011.
All materials related to the Company’s restructuring, including the plan, the transaction, and other related documents, are available at www.pwc.com/car-fraserpapers . |
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