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MONTREAL, Aug. 30, 2018 /CNW Telbec/ - Resolute Forest
Products Inc. (NYSE: RFP) (TSX: RFP) today announced that it
has entered into a definitive asset purchase agreement with
ND Paper LLC, a subsidiary of Nine Dragons Paper (Holdings)
Limited ("Nine Dragons"), for the sale of its Fairmont, West Virginia, recycled bleached
kraft pulp mill, for $55 million plus
certain elements of working capital, payable in cash.
Nine Dragons is primarily engaged in the production and sale of
a broad variety of packaging paperboard products, including
linerboard, high-performance corrugating medium, coated duplex
board, as well as recycled printing and writing paper and specialty
paper. In addition to nine paper mills operating in
Asia, Nine Dragons, through its
wholly-owned subsidiary ND Paper, also operates two U.S.-based
facilities in Wisconsin and
Maine.
ND Paper has agreed to offer employment to Fairmont mill employees, effective upon
closing of the transaction, which is expected within the next two
months.
"We are proud of the progress we have made together with the
mill employees over the years to improve the Fairmont operation," said Yves Laflamme, president and chief executive
officer of Resolute. "We are pleased that the local community and
broader region of the state will continue to benefit from the
economic and social impact of the mill's operation."
"Proceeds from this asset sale will enable us to further
increase liquidity, and continue to improve our balance sheet and
financial flexibility," added Laflamme. "Over the coming days, we
will communicate with our customers to discuss the transition of
supply as we seek to optimize our recycled bleached kraft pulp
business at our Menominee,
Michigan facility."
BMO Capital Markets is acting as Resolute's financial advisor on
the transaction. Davies Ward
Phillips & Vineberg LLP and Jackson Kelly PLLC are
acting as Resolute's legal counsels.
Cautionary Statements Regarding Forward-Looking
Information
Statements in this press release that are not statements of
historical results, performance, financial condition, or other
historical information of Resolute Forest Products Inc. are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. They include, for
example, statements regarding the proposed sale of the Fairmont, West Virginia pulp mill and the
anticipated benefits and use of proceeds. Forward-looking
statements may be identified by the use of forward-looking
terminology such as the words "will," "expect," "believe" and other
terms with similar meaning indicating possible future events or
potential impact on our business or our
shareholders.
The reader is cautioned not to place undue reliance on these
forward-looking statements, which are not guarantees of future
performance. These statements are based on Resolute's management's
current assumptions, beliefs, and expectations, all of which
involve a number of business risks and uncertainties that could
cause actual performance or outcomes to differ materially from
those expressed in this press release. Some of the potential risks
and uncertainties that could cause the company's actual future
performance or outcomes to differ materially from those expressed
or implied in this press release include, but are not limited to,
the possible inability to timely complete the proposed sale of the
Fairmont, West Virginia pulp mill
or to achieve the expected benefits of the sale; and the potential
risks and uncertainties described under the heading "Risk Factors"
in Part I, Item 1A of the company's annual report on Form 10-K for
the year ended December 31, 2017.
All forward-looking statements in this press release are
expressly qualified by the cautionary statements set out or
referred to above and in the company's filings with the U.S.
Securities and Exchange Commission and the Canadian securities
regulatory authorities. The company disclaims any obligation to
publicly update or revise any forward-looking information, whether
as a result of new information, future events or otherwise, except
as required by law.
About Resolute Forest Products
Resolute Forest Products is a global leader in the forest
products industry with a diverse range of products, including
market pulp, tissue, wood products, newsprint and specialty papers,
which are marketed in close to 70 countries. The company owns or
operates some 40 manufacturing facilities, as well as power
generation assets, in the United
States and Canada. Resolute
has third-party certified 100% of its managed woodlands to
internationally recognized sustainable forest management standards.
The shares of Resolute Forest Products trade under the stock symbol
RFP on both the New York Stock Exchange and the Toronto Stock
Exchange.
Resolute has received regional, North American and global
recognition for its leadership in corporate social responsibility
and sustainable development, as well as for its business practices.
Visit www.resolutefp.com for more information.
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SOURCE Resolute Forest Products Inc.