Fraser Papers Receives Notice of Chapter 11 Filing for SMART Papers.TORONTO -- (All financial references are in US dollars unless otherwise noted) Fraser Papers Fraser Papers Inc. TSX: FPS is a Toronto, Ontario, Canada-based manufacturer of specialized printing, publishing, and converting papers, with customers in Canada and the US. It manages more than two million acres (8,000 km²) of forest, operates a tree nursery, and sawmills. Inc. ("Fraser Papers") (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :FPS (Frames Per Second) The measurement of full-motion video performance. See frame. fps - frames per second ) received notice today that Premium Papers Holdco LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , and its subsidiaries SMART Papers LLC and PF Papers LLC (collectively, "Smart Papers"), have filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code. A subsidiary of Fraser Papers owns a 40% passive minority interest in Smart Papers and leases a boiler to Smart Papers. In addition, Fraser Papers has made certain financial guarantees pursuant to the sale of its Midwest Operations to Smart Papers in 2005. Fraser Papers will evaluate the impact of this filing and related court proceedings on its interests in Smart Papers. Depending on the outcome of these proceedings, Fraser Papers may record a significant write-down in the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of those interests. As at December 31, 2005, Fraser Papers' investment in Smart Papers totaled $74 million and amounts receivable for the lease of a boiler and sale of pulp totaled $17 million. Management currently estimates that other financial guarantees related to operating leases, contracts and landfill operations could result in costs of approximately $8 million. Fraser Papers is an integrated specialty paper company which produces a broad range of technical, and printing & writing papers. The company has operations in New Brunswick, Maine, New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). and Quebec. Fraser Papers is listed on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol: FPS. For more information, visit the Fraser Papers web site at www.fraserpapers.com. Note: This press release contains "forward-looking statements" including statements about the company's evaluation of future events, the company's possible recording of a significant writedown and management's estimates of other financial guarantees. These statements are based on certain assumptions and reflect the company's current expectations. These assumptions include the amounts by which the company could resell or utilize any assets purchased as a result of its financial guarantees. The words "estimates", "will", "may" and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward-looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include general economic conditions, the outcome of any legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. , interest rates, availability of equity and debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay and other risks detailed from time to time in the documents filed by the company with the securities regulators in Canada, including in the Annual Information Form under the heading "Forward Looking Information". The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Fraser Papers Inc. (TSX:FPS) |
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