Aug 07, 2009. /Lesprom Network/. Fraser Papers Inc. has posted a net quarterly loss of $8 million (US), down from their previous quarter's loss of $15.6 million. Throughout the quarter, the company only operated its lumber mills at 12% of capacity, ForestTalk reported. Fraser Papers employed 2,600 people at the end of 2007 and owns and operates a paper mill in Gorham, New Hampshire, and an integrated pulp and paper plant in Edmundston, New Brunswick and in Madawaska, Maine, and 4 lumber mill in Quebec and New Brunswick. Fraser Papers, controlled by the Brookfield Asset Management investment company, formerly Brascan, is currently under bankruptcy protection. "With the support of our major stakeholders, we have secured adequate debtor-in-possession financing and we are now in the process of developing a restructuring proposal for consideration by our creditors," CEO Peter Gordon said in a release. "Our objective is to emerge with a sustainable and profitable specialty papers business. A key first step will be to reach satisfactory resolution to our labour and energy issues at our Edmundston operation." Following the indefinite closure of the majority of the company's Canadian operations, including the Thurso pulp mill in Quebec, the Edmundston sulphite mill and the two New Brunswick lumbermills, Fraser Papers said it decided to scrap its Canadian dollar hedging program. After closing out its contracts, the company booked a gain of $12.5 million on the hedging program.