News | February 1, 1999

Pacifica Paper to Reorganize as a Corporation

Pacifica Paper Ltd. (Vancouver, BC) will convene a meeting of its limited partners on March 11 to consider reorganization and conversion of the partnership to a corporation. Pursuant to the reorganization, the 25,758,000 units held by limited partners will be replaced with common shares of the company's wholly owned subsidiary, Pacifica Papers Inc., on a one-for-one basis, terminating the partnership.

The general partner, entitled to 3.5% of the distributable cash of the partnership under certain conditions, will receive 600,000 common shares of Pacifica Papers in consideration for its partnership interest.

The reorganization is being implemented in conjunction with a refinancing of Pacifica's credit facilities. The reorganization is subject to certain regulatory approvals and other conditions, including approval by a special resolution of limited partners and approval of the issuance of shares to the general partner by a majority of disinterested limited partners. Further information will soon be provided to limited partners by way of proxy materials.

Pacifica manufactures and markets value-added papers, including lightweight coated paper, telephone directory paper, and other specialty groundwood papers, as well as newsprint, for customers worldwide. Pacifica's operations include paper mill complexes in Powell River and Port Alberni, BC, with a combined annual capacity of 885,000 m.t.