Fraser Papers posts net loss of $13.1 million

Fraser Papers Inc.Fraser Papers has posted a net loss of $13.1 million in its first quarter.

As a result of the sale of Fraser Papers' specialty papers assets to Twin Rivers Paper Company Inc. and the sale of their pulp mill in Thurso, Québec in April 2010, the operating results of these operations have been disclosed as "discontinued operations" in the Statements of Operations.

Fraser Papers has filed its first quarter 2010 financial statements, including the related management discussion and analysis, on SEDAR at www.sedar.com. As a result, the Company is now in compliance with its continuous disclosure obligations.

In December 2009, Fraser Papers submitted a restructuring proposal to the courts that has provided for an early exit from creditor protection for its core specialty papers business and should provide for the maximum recovery of value for creditors.

The proposal involved a two-stage process that created a stand-alone business out of Fraser Papers' specialty papers assets to be followed by the subsequent divestiture of the remaining assets by way of separate transactions.

The proceeds from the sale of the specialty papers assets to Twin Rivers, plus additional proceeds from the sale of the remaining assets in Fraser Papers, will be used to settle the remaining secured claims against Fraser Papers, prior to distributing any remaining proceeds to its unsecured creditors.

The remaining assets include a paper mill in Gorham, New Hampshire and two lumbermills in northern Maine. Fraser Papers completed the sale to Twin Rivers on April 28, and the sale of the pulp mill in Thurso, Québec on April 30, 2010.

The ultimate recovery for the creditors of Fraser Papers, if any, will not be determined until a final determination of all the claims against the company and a distribution of the net proceeds.

Source: Fraser Papers