Tembec U.S. operation seeks bankruptcy protection
Tembec Inc. said Monday that its U.S. operation has filed for bankruptcy protection.
The Canadian forest products company said its Tembec USA LLC filed a petition seeking relief under Chapter Seven of the Bankruptcy Code of the United States.
The division is a non-operating U.S. subsidiary of Tembec.
Tembec USA LLC operated a coated paper mill located in St. Francisville, Louisiana which was idled in July 2007. The property and equipment was subsequently sold to a third party in April 2009.
The company said in a release that Tembec USA LLC currently has obligations totaling $81 million US and assets totaling $1 million.
As a result of the filing, Tembec will reduce its consolidated accrued benefit obligation by $9 million.