Tembec recapitalization plan supported by steelworkers' union wood council

By Caroline Salls

Pittsburgh, Jan. 4 - Tembec Inc.'s proposed recapitalization plan has gained the support of the United Steelworkers' Wood Council, according to a USW news release.

According to the release, the union believes the recapitalization plan will position Tembec to "weather the crisis" caused by the Harper-Bush Softwood Lumber Agreement, the high Canadian dollar and the state of the U.S. economy.

"As shareholders, both figuratively and literally, our members applaud this initiative in the current crisis that has been largely ignored by the BC, Ontario and federal governments," Wood Council chair Bob Matters said in the release.

As previously reported, the recapitalization plan will convert bondholders' debt into new equity, reduce the company's interest payments and allow Tembec to access new liquidity.

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

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