Smart Paper Still Operating as Bankrupt

SMART paper continues to operate under a chapter 11 status as we previously reported. Although the Ohio mill remains open, the Wisconsin mill has been shut down, hoping that CellMark will purchase and reopen. Fraser Paper, the operator that originally sold the Park Falls, Wisconsin mill to SMART is worried. They own a 40% stake in SMART ($75million) and $14million due them on pulp sales and asset rental. Fraser also made certain financial guarantees amounting to $8million when it sold the mill to SMART in 2005.