Press release out this morning on Canada Newswire - looks like there's
still time on the game clock.
OLLOWING THE UNSUCCESSFUL MERGER BETWEEN REPAP ENTERPRISES
INC. AND AVENOR, THE REPAP BOARD OF DIRECTORS HAS REVIEWED A
NUMBER OF ALTERNATIVES AND INITIATIVES
MONTREAL, April 14 /CNW/ - Repap Enterprises Inc. today announced that,
following the unsuccessful merger between Repap and Avenor, the Repap Board of
Directors has reviewed a number of alternatives and initiatives. While the
Board's preference remains the sale of the shares of the Company, it is now
prepared to also consider bids for each or any combination of the Company's
operations.
To facilitate this process, Repap has asked its advisors, Dillon, Read &
Co. Inc. and TD Securities Inc., to seek out firm bids for each of the
Company's operating subsidiaries. Mr. Stephen Larson, President and C.O.O.
said, ``We expect to conclude the bid process by the third quarter. We have
the support of our lenders and accordingly can take the time necessary to
ensure that the best possible value is received for our shareholders. We
believe the market has lost sight of the value of our world-class assets which
represent 10% of the North American coated paper markets and does not yet
appreciate the strength of the turn-around currently underway. In addition,
Manitoba continues to perform well and also commands a 10% share of the high-
performance kraft paper market.''
At the same time, Repap announced that its subsidiary, Repap New
Brunswick Inc., has secured an increase in its operating credit facility. Mr.
Larson said, ``This resolves any short term liquidity requirements. With the
recovery in coated paper prices and the continuing excellent performance of
the Miramichi mill, we expect this operation to return to profitability later
this year.''
Repap Enterprises is a fully integrated, high technology North American
forest products company with an annual capacity of 1,000,000 tons of coated
paper. 170,000 tons of superior strength kraft paper and lumber operations in
Manitoba and New Brunswick.
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