MARATHON, ON, Feb. 13 /CNW Telbec/ - Marathon Pulp Inc. ("Marathon")
announced today that it has filed a notice of intention to make a proposal
under the Bankruptcy and Insolvency Act (Canada). The filing by Marathon
results primarily from the significant recent weakness in global pulp markets
which has negatively impacted Marathon's cash flow to the point where it could
no longer meet its ongoing financial obligations.
The effect of the filing will be to establish a period of creditor
protection for Marathon. Marathon has also provided its lenders with a waiver
that will allow them to enforce their security should they see fit.
Current plans call for existing raw material inventories to be drawn down
and converted into market pulp. It is expected that this will require the mill
to operate until approximately February 28, following which the mill is
expected to be idled indefinitely. Employees have been notified of the plan
for an orderly idling of the operation.
PricewaterhouseCoopers Inc. will be acting as trustee.
For further information:
For further information: Sue Nakanishi, Vice President & COO, (807)
229-1200 ext. 2000, firstname.lastname@example.org