Most creditors OK Uniforet plan of arrangement
The softwood lumber and woodpulp maker, which filed for court protection from its creditors in mid-April, said the only class of creditors that had yet to vote on the plan was U.S. noteholders.
MONTREAL, Aug 15 (Reuters) - Cash-strapped Uniforet Inc. (Toronto:UNFa.TO - news) said on Wednesday its amended plan of arrangement for restructuring its debt and other obligations had been approve by six of its seven classes of creditors.
The softwood lumber and woodpulp maker, which filed for court protection from its creditors in mid-April, said the only class of creditors that had yet to vote on the plan was U.S. noteholders.
A court order temporarily suspended a meeting of those creditors after a few U.S. noteholders, unhappy with the composition of the class of creditor, instituted proceedings, Uniforet said.
A court is set to set a hearing date for those proceedings on Sept. 18, the company said.
In the meantime, Uniforet said it was maintaining normal operations and paying its suppliers.
Uniforet sought court protection after being squeezed by eroding pulp and lumber prices and failing to meet the interest payment on its long-term debt.
Jolina Capital Inc. holds a 19.6 percent voting stake in Uniforet and a 66 percent interest in its U.S. notes. Jolina is controlled by Emanuele ``Lino'' Saputo, chairman and chief executive of Canadian cheese maker Saputo Inc. (Toronto:SAP.TO - news).
($1 equals $1,54 Canadian)