Doman says Interfor pulls out, Ableco jumps in

New York, April 2 - Doman Industries Ltd. said International Forest Products Ltd. has decided to pull out of talks about an investment in the company but added that it has received a new letter of intent from Ableco Finance LLC about a restructuring proposal.

Interfor decided it was not going to be able to reach an agreement that met its financial criteria and was also acceptable to creditors, Doman said.

The creditors had previously opposed Interfor's proposal.

But Doman said that Friday it received a letter from Ableco, a company related to Cerberus Capital Management, LP, putting forward an constitutes an alternative restructuring proposal for Doman's secured and unsecured indebtedness.

Doman said it will review the proposal along with other expressions of intent.

The Duncan, B.C. forest products company said it will ask for an extension of its stay of proceedings under the Companies Creditors Arrangement Act on April 5.

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