Uniforet settles bankruptcy (August 16, 2001)

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PORT-CARTIER, Que. — After seeking bankruptcy protection last April, Uniforet has come to terms with six of seven classes of its outstanding creditors.

Creditors voted yesterday to accept a restructuring plan that will see them paid between eight and 51 cents on every dollar owed. The forestry firm says a plan put forward to U.S. creditors — the only unsettled class — has not been voted on because the settlement is being contested in court. In July, a Quebec Superior Court judge postponed a vote by U.S. creditors until the court sorts out who is eligible to vote.

Meanwhile, the forestry company continues to make payments to suppliers and two of the company’s sawmills, in Port-Cartier, Que. and Peribonka, continue to run. A second mill in Port-Cartier has closed. The company has not shown a profit in 20 consecutive quarters.

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