Moscow. Nov 03, 2009. /Lesprom Network/. Fraser Papers Inc. reported financial results for the 3Q ended October 3, 2009. The company generated an EBITDA loss of $10.0 million in the 3Q compared to an EBITDA loss of $9.9 million in the 2Q.The net loss in the 3Q totaled $65.1 million or $1.30 per share compared to a loss of $8.0 million or $0.16 per share in the 2Q. During the 3Q the company recorded an impairment charge of $42.3 million related to its pulp mill in Thurso, Quebec which has been closed indefinitely since June 5, 2009. During the 2Q, the company recorded a gain of $12.5 million from unwinding its foreign exchange hedging program.
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.
Fraser Papers is an integrated specialty paper company that produces a broad range of specialty packaging and printing papers. The Company has operations in New Brunswick, Maine, New Hampshire and Quebec.
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