Cambior to repay bill by June

In a deal struck with its lenders and hedge providers, Cambior (CBJ-T) will repay US$75 million of its US$212-million loan obligations by June 30, 2000.

This interim payment is part of a preliminary agreement that will see the company continue to pay interest on its loans at the London Inter-Bank Offer Rate plus 0.75% until June 30.

Outstanding loans after June would be subject to additional interest charges that could amount to US$2 million in extra payments.

As part of the deal, Cambior must also convert its flexible-forward positions, including spot-deferred contracts and call options, into fixed-forward positions maturing over the next three years.

Cambior is expected to sign a definitive agreement by Dec. 22, and the current standstill arrangement between the company and its creditors has been extended until that day.

The definitive agreement will likely include restrictions on capital expenditures, hedging, dividends and asset sales, as well as a commitment by Cambior to grant security interests over additional assets.

Meanwhile, Cambior says it continues to pursue “substantial” asset sales or transactions, and that it is encouraged by initial signs of interest.

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