Fraser Papers posts net quarterly loss of $65.1 million

Fraser Papers Inc. has just reported financial results for the third quarter ended October 3, 2009.

The net loss in the third quarter totaled $65.1 million or $1.30 per share compared to a loss of $8.0 million or $0.16 per share in the second quarter. During the third quarter Fraser Papers recorded an impairment charge of $42.3 million related to its pulp mill in Thurso, Québec which has been closed indefinitely since June 5, 2009.

On June 18, 2009, citing continued operating losses, weak markets for pulp and lumber, impending debt repayments and significant pension funding obligations, the Company 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. Fraser Papers has continued to work with its major stakeholders to develop a plan that would see the Company restructure around its core specialty papers operation. During the quarter, significant progress was made, particularly in labour negotiations and discussions with secured creditors. Fraser Papers expects to file a restructuring proposal prior to the expiry of its current stay period on December 4, 2009.

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Fraser Papers Announces Financial Results for the Third Quarter of 2009 (Fraser Papers)