Ainsworth Lumber Co Ltd has received the backing it needs from financial creditors and shareholders to carry out a recapitalisation programme that will see it reduce its debt burden and enhance liquidity.
Ainsworth is to transfer C$823.5m (US$810m) in unsecured notes for equity while generating C$150m in new unsecured notes as part of a drive to help it adapt to the challenging OSB market driven by the weak US housing sector.
Around 92% of shareholders have entered an agreement to proceed with the recapitalisation exceeding the two-thirds needed, with all the company’s creditors agreeing to the plan.