Bear Island Paper Co. LLC, Ashland, VA, applied for bankruptcy protection on February 24, 2010. On the same date, Bear Island's parent company, White Birch Paper Co., filed for similar protection for its Canadian operations, all in the province of Quebec, namely: , Rivi&egrav;re-du-Loup; Gatineau; , Québec City; Stadacona/Leduc sawmill, St. Emile, Québec. US protection is also being sought for the Canadian operations.

White Birch is the second largest newsprint maker in North America, producing over 1.3 million tonnes of newsprint and directory paper with up to 50% recycled content. It also produces some 45 000 tonnes of paperboard. Headquartered in Greenwich, CT, White Birch is a privately owned, family-run business. Peter Brant is the principal.

Poor newsprint demand is one of the reasons presented for the action.

Previously, in a Nov 17, 2009, report, Standard & Poor's Credit Research organization said, "It is our understanding that Nova Scotiabased White Birch Paper did not make a scheduled $18-million interest payment due Sept.30, 2009. We are lowering the corporate credit rating on White Birch to 'D' from 'CCC+'. We also lowered the issue-level ratings on the company's secured debt to 'D'".

A report in Montreal's The Gazette on February 24, said that White Birch was seeking a court-authorized $C140-million loan to permit it to continue operating while it re-organized. www.whitebirchpaper.com

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