Fraser Papers seeks protection from creditors

2009-06-18 21:06:00 -

PORTLAND, Maine (AP) - Fraser Papers Inc. is filing for protection from creditors in courts in Canada and the U.S., and says its mills in Maine and New Hampshire will continue to operate without disruption.
The Toronto-based company announced that its filings Thursday in the Ontario Superior Court of Justice and the U.S. Bankruptcy Court in Delaware will provide time to restructure the business.
In Maine, Gov. John Baldacci quotes Fraser CEO Peter Gordon as saying there will be no immediate impact on operations at the Madawaska mill. Fraser said operations also will continue as normal in Gorham, New Hampshire.
Fraser says the filing is the result of weak demand and low prices for pulp and lumber, along with scheduled debt repayments and pension funding obligations.