TORONTO, June 25 /CNW/ - Grant Forest Products has begun a process of
reorganizing the financial affairs of its Canadian Operations under the
Companies' Creditors Arrangement Act (CCAA). The company is taking this step
to allow an organized restructuring of its liabilities.
The global economic situation and the dramatic downturn in housing
markets, particularly in the United States, has significantly changed the
operating environment for the entire industry and a capital restructuring is
necessary to position Grant Forest Products for future growth.
"We continue to work closely with our lenders and are entering the CCAA
process with their cooperation," said Peter Grant Jr., President, Grant Forest
Products. "This is a proactive step to reorganize the company in a way that
will help ensure our future success. We're well positioned to come out of this
as the dominant North American market player in oriented strand board (OSB)
with the lowest cost base and highest quality assets in our industry."
"We're doing everything we can to protect jobs, the community and our
important customer and supplier relationships. The CCAA process doesn't change
that. In fact, strengthening our company is the best way to protect jobs and
that's just what we're doing," added Grant.
Grant Forest Products mills are among the lowest cost and largest in the
industry giving it a significant edge over competitors. The facilities include
some of the newest technologies and have the flexibility to produce a wide
range of products across multiple markets. The technology of the mills,
coupled with 27 years of process know-how has led to a stronger low-cost
position vs. the industry.
OSB is a value added industry that's the future of the forestry sector in
Ontario. This restructuring will put Grant Forest Products in an excellent
position to capitalize on it.
At full operation, Grant employs nearly 540 people in Ontario and a total
of about 715 in Canada. The economic spin-off effects of its business support
an additional 3,000 jobs and 500 Ontario companies.
For further information:
For further information: Media inquiries: Bob Fleet, Grant Forest
Products, (705) 563-3206