Terrace Bay Pulp Keeps Working to Re-Open

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TERRACE BAY – Terrace Bay Pulp has  announced that it will be filing, today, its CCAA restructuring plan and other materials, with the Commercial List Court in Toronto, to seek the Court’s approval for a meeting of creditors to be held on June 21, 2010 to vote on the plan.

At the Commercial List Court hearing, scheduled for May 26, 2010, the Court will be asked to authorize and establish the procedures necessary to conduct the creditors meeting.

The steps being taken today put Terrace Bay Pulp on a path forward that would allow for a resumption of operations as soon as possible.  There remain, in addition to the need for creditor support for the Plan, a number of issues that must be resolved in the coming weeks if the mill is to successfully recommence operations.     To this end, the Company remains in active discussions with creditors and other stakeholders with a view to exiting from CCAA protection by the end of June.

Terrace Bay Pulp will continue to keep stakeholders advised as these discussions proceed.

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James Murray
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