FRASER PAPERS: Implements Plan of Arrangement

The TCR reports that Fraser Papers Inc. and its subsidiaries disclosed that the Amended Plan of Arrangement and Compromise, which was approved by its creditors on February 8, 2011, has been approved by the courts overseeing the Company's creditor protection proceedings.

At a hearing on February 10, 2011, the Ontario Superior Court of Justice, which is overseeing the proceedings under the Companies' Creditor Arrangement Act ("CCAA") in Canada, issued orders (the "Canadian Orders") sanctioning the Plan and approving the transaction under which the Company has agreed to sell its subsidiaries in the U.S. to the Plan Sponsor, Brookfield Asset Management (the "Transaction").

At a hearing on February 11, 2011, the U.S. Bankruptcy Court for the District of Delaware, which is overseeing the proceedings under Chapter 15 of the U.S. Bankruptcy Code, issued a recognition order recognizing the Canadian Orders, sanctioning the Plan and approving the Transaction.

Following the approvals by the Canadian Court and the US Court, the Company began working diligently to complete the Transaction and implement the Plan on February 15, 2011. As part of the implementation of the Plan, the Company distributed approximately $44 million in unsecured notes issued by Twin Rivers Paper Company Inc. ("Twin Rivers") and a 49% common equity interest in Twin Rivers to Fraser Papers' creditors.

Fraser Papers Inc. continues under creditor protection while it finalizes its restructuring activities including settling unresolved claims, completing the sale of certain assets and distributing all residual cash to creditors after paying the remaining costs of the proceedings. Fraser Papers expects to complete these activities before its stay period expires on May 2, 2011.

About Fraser Papers

Fraser Papers -- http://www.fraserpapers.com/ -- 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.

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 protection under the Companies Creditors Arrangement Act
(Ont. Super. Ct. J. Ct. File No. CV-09-8241-00CL) in Toronto and
Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No.
09-12123). Fraser is represented by Michael Barrack, Esq.,
Robert I. Thornton, Esq., and D.J. Miller, Esq., at
ThorntonGroutFinnigan LLP, in Toronto, and Derek C. Abbott, Esq.,
at Morris, Nichols, Arsht & Tunnell LLP, in Wilmington, Del.