Doman stay in bankruptcy proceedings extended to Sept. 22

New York, July 21 - Doman Industries Ltd. said the Supreme Court of British Columbia extended the stay of proceedings under the Companies Creditors Arrangement Act to Sept. 22.

The action follows Doman's receipt of a new restructuring plan from Tricap Restructuring Fund, believed to hold approximately 18% of its unsecured notes.

As previously reported, the Duncan, B.C. forest products company said the Tricap proposal is "materially different" from the restructuring plan previously put forward by a group of unsecured noteholders, including Tricap, and filed with the Court on Nov. 7, 2002.

It said consideration of the plan will take up to two months.

In addition, if the new company accepts the proposal it will need to carry out further negotiations with representatives of unsecured noteholders and others before a revised plan of arrangement can be presented to the Court.

Doman said it does not expect to be in a position to file a revised plan of arrangement before September.

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