Tembec Industries, Forest Products Company, Files Bankruptcy

Tembec Industries Inc. filed for protection from U.S. creditors citing the rising value of the Canadian dollar, declining U.S. housing construction and a glut of timber because of a beetle infestation in British Columbia.

The unit of Montreal-based Tembec Inc. said in papers filed today in U.S. Bankruptcy Court in New York that its assets and debts exceed $1 billion.

Tembec Industries filed under Chapter 15 of the U.S. Bankruptcy Code, saying it wants the debt restructuring it began in January in the Ontario Superior Court of Justice to take precedence over the U.S. case. Chapter 15 allows foreign companies to reorganize outside the U.S. while protecting them from U.S. lawsuits and creditor claims.