Fraser Papers posts net loss of $302.7 million

Fraser Papers has posted a net loss of $302.7 million or $6.03 per share in its second quarter, compared to a loss of $8.0 million or $0.16 per share in the second quarter of 2009.

During the quarter, Fraser Papers recorded net non-cash charges of $298.5 million related to the company's pension plans and post-retirement benefit programs.

The company's EBITDA was a loss of $2.1 million from continuing operations in the second quarter of 2010 compared to positive EBITDA of $1.0 million in second quarter of 2009.

The proceeds from the sale of the specialty papers assets to Twin Rivers were used, in part, to settle certain claims against Fraser Papers. Fraser Papers continues to own a 49% minority equity interest in Twin Rivers as well as certain unsecured notes issued by Twin Rivers. These assets are expected to be distributed to creditors under a plan of arrangement and distribution in the coming months. The company is in the process of selling its remaining assets which include a paper mill in Gorham, New Hampshire and two lumber mills in northern Maine.

On June 18, 2009, citing continued operating losses, weak markets for its products, impending debt repayments and significant pension funding obligations, Fraser Papers and its subsidiaries filed for creditor protection under the Companies' Creditors Arrangement Act ("CCAA") in Canada and Chapter 15 of the U.S. Bankruptcy Code.

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