Fraser Papers stabilizes business
Fraser Papers is attempting to reassure its customers that all is well after it filed last month for bankruptcy protection in Canada and the United States.
In a letter to customers, the Toronto-based company said it has stabilized its businesses with a $20 million loan, satisfied its stockholders and is pursuing an allocation from the $1 billion Canadian Federal Green Transformation Program, according to an article from the Bangor Daily News. The letter also said the New Brunswick government has agreed to provide $9 million to allow the company to complete the modernization of its Plaster Rock lumber mill, near Edmundston, N.B., the paper reported.
When the company filed for bankruptcy protection in June, it said the move would not impact its paper mills in Madawaska and Gorham, N.H., nor the Katahdin Paper mill it operates in East Millinocket. However, the company is closing its lumber mill in Masardis and laying off its 160 workers no later than Aug. 8, Glen McMillan, Fraser's CFO, told Mainebiz this morning. The lumber mill in Ashland was closed in January 2008, contrary to the paper's report that Fraser is still operating its lumber mill there.
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