Business News

Fraser Papers Signs Agreement to Sell New Hampshire Paper Mill

Wednesday 01. December 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.