Client Work Detail

On February 29, 2008, Tembec Inc. completed a financial recapitalization plan which included the conversion of US $1.2 billion of Tembec's Unsecured Senior Notes into new equity; the implementation of a new 4-year term loan of US $300 million to provide additional liquidity; and the reduction of Tembec's annual interest expense by approximately $67 million.

The new capital structure will provide a stronger financial base for the execution of Tembec's operating strategy and enhance the long-term value of the company. Tembec's trade creditors, as well as its obligations to employees, including under its pension and benefit plans, are unaffected by the recapitalization. The recapitalization was conducted by a CBCA Plan of Arrangement.

BMO Capital, financial advisor to Tembec, was represented by Ogilvy Renault LLP with a team comprised of Richard S. Sutin and Evelyn Li (Corporate Finance and Securities) and Alan Mark (Litigation).