Fraser Papers

Specialty packaging and printing paper producer Fraser Papers has sought out bankruptcy protection in the United States and Canada. Fraser and its subsidiaries have initiated a court-supervised restructuring under the Companies' Creditors Arrangement Act in Canada and will be seek similar relief under Chapter 15 of the U.S. Bankruptcy Code. Fraser will continue its routine business operations.

Generally speaking, Chapter 15 helps sort out bankruptcy cases that involve parties (debtors, assets, claimants, etc.) from more than one country. Fraser is based in Toronto.

Valassis Communications has filed a countersuit against Fraser Papers in district court in Maine. Earlier, Fraser had taken Valassis to court over an alleged unpaid bill for 1.8 million pounds of specialty paper valued at $933,000.

In Valassis' countersuit, the printer contends it has not paid the amount allegedly due Fraser because of an earlier outstanding debt owed by Fraser to Valassis for defective paper.

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