Mar 23, 2006. /Lesprom Network/. Fraser Papers Inc. received notice on Wednesday, March 22, that Premium Papers Holdco LLC, and its subsidiaries Smart Papers LLC and PF Papers LLC (collectively, "Smart Papers"), have filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code. A subsidiary of Fraser Papers owns a 40% passive minority interest in Smart Papers and leases a boiler to Smart Papers. In addition, Fraser Papers has made certain financial guarantees pursuant to the sale of its Midwest Operations to Smart Papers in 2005. Fraser Papers will evaluate the impact of this filing and related court proceedings on its interests in Smart Papers. Depending on the outcome of these proceedings, Fraser Papers may record a significant write-down in the carrying value of those interests. As at December 31, 2005, Fraser Papers' investment in Smart Papers totaled $74 million and amounts receivable for the lease of a boiler and sale of pulp totaled $17 million. Management currently estimates that other financial guarantees related to operating leases, contracts and landfill operations could result in costs of approximately $8 million. Fraser Papers is an integrated specialty paper company which produces a broad range of technical, and printing and writing papers. The company has operations in New Brunswick, Maine, New Hampshire and Quebec. Fraser Papers is listed on the Toronto Stock Exchange.