Dec 04, 2009. /Lesprom Network/. Fraser Papers Inc., which is operating under court protection from creditors, filed a restructuring plan that would see the company focus its business on its specialty papers business and sell off its other assets, as The Canadian Press reported. "The new paper company will be significantly smaller but will be viable and more competitive in fewer market segments," chief executive Peter Gordon said in a statement. "Importantly, the business will have much less risk, with lower exposure to foreign exchange as well as lumber, market pulp and oil prices." The plan calls for a two-stage process including the sale of the company's specialty paper assets in Madawaska, Maine, and Edmundston, N.B., as well as the two New Brunswick lumber mills located in Plaster Rock and Juniper, to a new company. Under the terms of the offer, Brookfield Asset Management Inc., a secured creditor, has agreed to convert its claim against the company into a 51% sake in the new company, while the New Brunswick government has also agreed to convert its $35 million secured loan plus accrued interest into equity in the form of preferred shares of the new company. CIT Business Credit Canada Inc., the company's existing working capital lender, has agreed to provide a $50 million revolving credit facility from which its existing secured loans to the company will be repaid. The new company will also issue common shares, representing a 49% stake and promissory notes to the unsecured creditors of Fraser Papers. The second stage will involve the sale of the company's remaining assets including the Gorham paper mill in New Hampshire, two lumber mills in Maine the Thurso pulp mill in Quebec, that is currently shutdown. Fraser Papers produces specialty packaging and printing papers with operations in New Brunswick, Maine, New Hampshire and Quebec. Fraser Papers is an integrated specialty paper company that produces a broad range of specialty packaging and printing papers.