REPAP ANNOUNCES ASSET SALE
REPAP ANNOUNCES ASSET SALE MONTREAL, Jan. 6 /PRNewswire/ -- Miramichi Pulp and Paper Inc., a
wholly owned subsidiary of Repap Enterprises Inc., and the Miramichi Paper Partnership today announced the receipt of an offer which has been accepted subject to lender approval from General Electric Capital Canada to purchase the Chemical Recovery boiler together with electrical co- generation facilities for US $98 million.
The sale of the Chemical Recovery Unit, which services the Newcastle, New Brunswick Coated Paper Mills and integrated softwood kraft pulp mill, would be made to a partnership formed by General Electric Capital Canada. The proceeds from the sale would be retained in the company to augment liquidity and would provide the capital to complete the commissioning of the new Cdn. $1.3 billion world scale coated paper complex and to provide the back-up liquidity needed during the current North American recession. The company also announced, following a recent lenders meeting, that favorable consideration by the lenders was being given to the sale proposal and that lenders were positively proceeding to consider a recommendation. In conjunction with this proposal the Miramichi lenders have also been asked to execute a standstill agreement on interest for the first quarter of 1992 until the details of the transaction can be finalized. Repap Enterprises Inc. is an integrated forest products company with manufacturing facilities located in British Columbia, Manitoba and New Brunswick, Canada, and Wisconsin and an annual capacity of: 972,000 short tons of coated paper 160,000 short tons of kraft paper 680,000 metric tons of softwood kraft pulp 300 million board feet of lumber. -0- 1/6/92 /CONTACT: Terry W. McBride of Repap, 514-846-1316/ (RPP.) CO: Miramichi Pulp and Paper Inc.; Repap Enterprises Inc. ST: Quebec IN: PAP SU: TNM SM -- NY078 -- 7075 01/06/92 17:15 EST
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|Date:||Jan 6, 1992|
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