Bear Island seeks approval of framework for cross-border asset sale

By Lisa Kerner

Charlotte, N.C., April 19 - Bear Island Paper Co., LLC asked the court to approve the proposed sale and investor solicitation process and related procedures to promote "a coordinated and comprehensive cross-border sale process of the WB Group's businesses," according to a filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The process, more typical in Canadian courts, "establishes a framework but does not seek pre-approval of bidding procedures or of the sale itself," the filing said.

A hearing is set for April 27.

Under the proposed procedures, in April WB Group and its advisors including Lazard Feres & Co. LLC will prepare a list of potential bidders for the assets.

On or before May 3, Lazard will distribute a draft confidentiality agreement to potential bidders.

Between May 3 and June 15, phase 1 qualified bidders will receive a detailed memorandum from Lazard describing the opportunity to acquire all or substantially all of the assets.

Non-binding letters of interest will be due on June 15 with bids due July 15.

WB Group will select a stalking horse bidder on Aug. 2 and conduct a sale auction on Aug. 23.

A sale hearing will be requested to be held by Aug. 26, the filing said.

The sale would be expected to close on Sept 13, unless extended to Sept. 27.

Bear Island, a subsidiary of White Birch Paper Co., filed for bankruptcy on Feb. 24. The Chapter 11 case number is 10-31202.

White Birch is a Halifax, Nova Scotia, pulp and paper mill operator. Its Chapter 15 case number is 10-31234.

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