Fortress Paper completes the sale of Fortress Paper pulp mill
Fortress Paper Ltd. announces that its wholly owned subsidiaries, Fortress Global Cellulose Ltd. (“Fortress Global”) and Fortress Lumber Corp. (together with Fortress Global, the “Vendor”), have successfully closed the asset purchase agreement (the “APA”) entered into with LSQ Energy, L.P. and LSQ Development, L.P. (collectively, the “Purchaser”).
The APA provides for the sale of all of the assets relating to the non-operating pulp mill and sawmill, as well as the cogeneration facility, located in Lebel-sur-Quévillon, Québec.
The purchaser assumed $7.5 million of the Vendor’s liabilities, which amount has been paid to the trustee in repayment of amounts previously paid into the trust. The Company also obtained the release of the letters of credit in the aggregate amount of $1.125 million which had been previously deposited with Hydro Québec Distribution in connection with an electricity supply contract.