Tembec sets meeting date for vote on recapitalization

By Lisa Kerner

Charlotte, N.C., Jan. 29 - Tembec Inc. will hold a special meeting of its shareholders and Tembec Industries Inc. noteholders on Feb. 22 to vote on the company's proposed recapitalization.

The boards of Tembec and Tembec Industries unanimously recommend that shareholders and noteholders vote in favor of the recapitalization.

BMO Capital Markets provided a fairness opinion, according to a company news release.

As previously reported, Jan. 21 was the record date for qualifying noteholders to participate in the new $250 million to $300 million loan under the recapitalization, as well as to receive their share of 43% of the recapitalized Tembec equity, which will be based on their participation in the loan.

Under the recapitalization, the noteholders will also receive their share of 45% of the recapitalized equity of Tembec, based on the principal amount of notes held on the implementation date of the recapitalization, plus payment of any interest accrued up to Dec. 31.

Based in Montreal, Tembec is an integrated forest products company with operations primarily in North America and France.

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