Tembec's non-operating U.S. subsidiary files for Chapter 7

MONTREAL, April 25 /CNW Telbec/ - Tembec Inc. announced today that its non-operating U.S. Subsidiary, Tembec USA LLC has filed a petition seeking relief under Chapter 7 of the Bankruptcy Code of the United States.

Tembec USA LLC operated a coated paper mill located in St. Francisville, Louisiana ("Mill"). The mill was idled in July 2007 and the property and equipment subsequently sold to a third party in April 2009. Tembec USA LLC currently has obligations totalling US $81 million and assets totalling US $1 million.

As a result of the filing, Tembec Inc. will reduce its consolidated accrued benefit obligation by US $9 million.

Tembec is a large, diversified and integrated forest products company which stands as the global leader in sustainable forest management practices. The Company's principal operations are located in Canada and France. Tembec's common shares are listed on the Toronto Stock Exchange under the symbol TMB and warrants under TMB.WT. Additional information on Tembec is available on its website at www.tembec.com.

    This press release includes "forward-looking statements" within the meaning of securities laws.  Such statements relate, without limitation, to the Company's or management's objectives, projections, estimates, expectations or predictions of the future and can be identified by words such as "may", "will", "could", "anticipate", "estimate", "expect" and "project", the negative or variation thereof, and expressions of similar nature.  Forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience, information available to it and its perception of future developments. Such statements are subject to a number of risks and uncertainties, including, but not limited to, changes in foreign exchange rates, product selling prices, raw material and operating costs and other factors identified in our periodic filings with securities regulatory authorities. Many of these risks are beyond the control of the Company and, therefore, may cause actual actions or results to materially differ from those expressed or implied herein. The forward-looking statements contained herein reflect the Company's expectations as of the date hereof and are subject to change after such date. The Company disclaims any intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable securities legislation.

 

SOURCE TEMBEC

For further information:

Michel J. Dumas
Executive Vice President, Finance and Chief Financial Officer
Tel.: 819 627-4268
michel.dumas@tembec.com

Tracy Dottori
Manager, Human Resources, Forest Products Group
Tel.: 819 627-4591
tracy.dottori@tembec.com

Patrick LeBel
Vice President, General Counsel and Corporate Secretary
Tel: 514 871-1473
patrick.lebel@tembec.com

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