Fraser to Sell New Hampshire Mill to Investment Fund

Fraser Papers Inc., Toronto, Ont., Canada, reported this week 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, N.H., USA. Financial terms of the transaction were not disclosed. The paper mill in Gorham, N.H. 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 U.S. Bankruptcy Court for the District of Delaware.

Fraser Papers remains under creditor protection pursuant to the provisions of the Companies' Creditors Arrangement Act (CCAA) of Canada, with its stay of proceedings having been extended by the court to July 9, 2010.

TAPPI
http://www.tappi.org/