2008-07-01

Ainsworth gains restructuring support


Ainsworth Lumber says as a result of further negotiations it expects to implement its restructuring plan -- which will see the company fall out of family ownership -- by the end of July.

The company, which at one time had plans to build two panel plants in B.C.'s Northern Interior fed by beetle-killed timber, says it has secured additional support for its restructuring plan announced earlier this month.

The deal to convert $823.5 million in debt into equity and $150 million US in new debt has support of 92 per cent of the shareholders, said Ainsworth.