Uniforet's protection from creditors extended
Cash-strapped forest-products company Uniforet Inc.(Toronto:UNFa.TO - news) said on Monday a Quebec court had given it another 45 days to get its debt restructuring plan approved by its creditors.
MONTREAL, Oct 1 (Reuters) - Cash-strapped forest-products company Uniforet Inc.(Toronto:UNFa.TO - news) said on Monday a Quebec court had given it another 45 days to get its debt restructuring plan approved by its creditors.
Six of its seven classes of creditors have approved the plan so far, but U.S. noteholders have yet to vote on it because some of them instituted legal proceedings to contest the composition of their class, Uniforet said.
The court is set to fix hearing dates for those proceedings on Oct. 9, the company said, adding it now has until Nov. 12 to come up with an approved plan.
Meantime, Uniforet said it was maintaining its operations and paying its suppliers.
But the company also said on Monday it will temporarily close its Peribonka sawmill, in Quebec, from Oct 8 to Oct 12, because of poor lumber market conditions.
The five-day shutdown will reduce production by some 4 million board feet, or 2 percent of the sawmill's annual output, and 180 employees will be temporarily laid off.
Uniforet's sawmill in Port-Cartier, Quebec, is also idle from Oct 1 to Oct 12, a decision that will reduce the company's total annual lumber output by 4 percent and put 190 workers on forced vacation.
Production at Uniforet's pulp plant in Port-Cartier has been halted since last February because of the weak conditions of the pulp market. About 120 workers were laid off for ``an indefinite period of time''.