Fraser Papers cancels agreement to sell New Hampshire mill

Fraser Papers Inc. has terminated the agreement to sell its paper mill in Gorham, New Hampshire because the purchaser could not secure sufficient financing to complete the transaction.

Fraser Papers has begun contacting other parties to determine their interest in acquiring the mill.

Fraser Papers also announced that it will close the mill indefinitely, on or about October 13, 2010, while the company continues its efforts to sell the mill. The shutdown is due to current market conditions and is in no way reflective of the outstanding dedication and commitment of the employees at the mill who have worked tirelessly to ensure Fraser Papers' paper products are of the highest quality.

In conjunction with the anticipated shutdown of the of the Gorham mill, Fraser Papers has provided notice to the employees of the Gorham mill under the Worker Adjustment and Retraining Notification ("WARN") Act.

Fraser Papers remains under creditor protection pursuant to the provisions of the Companies' Creditors Arrangement Act ("CCAA") in Canada and Chapter 15 of the United States Bankruptcy Code in the United States.

Source: Fraser Papers