Pacifica Papers Inc. announces suit by New York fund manager to prevent shareholder vote

Apr 23, 2001, 01:00 ET from Pacifica Papers Inc.

    VANCOUVER, April 23 /PRNewswire/ - Pacifica Papers Inc. ("Pacifica")
 announced today that an action has been commenced in the Superior Court of
 Ontario by an affiliate of Cerberus Partners L.P. ("Cerberus") against
 Pacifica and its chairman, J. Trevor Johnstone, under the oppression remedy of
 the Canada Business Corporations Act seeking, among other things, to prevent
 Pacifica from holding a shareholders' meeting to consider and vote upon
 Pacifica's arrangement agreement with Norske Skog Canada Limited ("NSCL"), to
 remove Mr. Johnstone as a director and damages against Mr. Johnstone.
     Pacifica believes that the lawsuit is without merit and will rigorously
 defend it and will resist all efforts on Cerberus' part to prevent Pacifica's
 shareholders from considering and voting upon the proposed transaction with
 NSCL at the Pacifica shareholders' meeting currently scheduled for May 31,
 2001 in Vancouver.
     Cerberus is a New York based fund manager. Pacifica understands that
 funds managed by Cerberus own approximately 18.8% of Pacifica's outstanding
 shares.
     Pacifica is a producer of value-added groundwood printing and
 communications papers including lightweight coated paper, soft nip calendered
 paper, telephone directory paper, machine finished hibrite paper, and
 newsprint. Pacifica's operations include two paper mill complexes at Powell
 River and Port Alberni, British Columbia, with a combined annual production
 capacity of close to 900,000 tonnes. Pacifica's shares trade on The Toronto
 Stock Exchange under the symbol "PPP".
 
 
 

SOURCE Pacifica Papers Inc.
    VANCOUVER, April 23 /PRNewswire/ - Pacifica Papers Inc. ("Pacifica")
 announced today that an action has been commenced in the Superior Court of
 Ontario by an affiliate of Cerberus Partners L.P. ("Cerberus") against
 Pacifica and its chairman, J. Trevor Johnstone, under the oppression remedy of
 the Canada Business Corporations Act seeking, among other things, to prevent
 Pacifica from holding a shareholders' meeting to consider and vote upon
 Pacifica's arrangement agreement with Norske Skog Canada Limited ("NSCL"), to
 remove Mr. Johnstone as a director and damages against Mr. Johnstone.
     Pacifica believes that the lawsuit is without merit and will rigorously
 defend it and will resist all efforts on Cerberus' part to prevent Pacifica's
 shareholders from considering and voting upon the proposed transaction with
 NSCL at the Pacifica shareholders' meeting currently scheduled for May 31,
 2001 in Vancouver.
     Cerberus is a New York based fund manager. Pacifica understands that
 funds managed by Cerberus own approximately 18.8% of Pacifica's outstanding
 shares.
     Pacifica is a producer of value-added groundwood printing and
 communications papers including lightweight coated paper, soft nip calendered
 paper, telephone directory paper, machine finished hibrite paper, and
 newsprint. Pacifica's operations include two paper mill complexes at Powell
 River and Port Alberni, British Columbia, with a combined annual production
 capacity of close to 900,000 tonnes. Pacifica's shares trade on The Toronto
 Stock Exchange under the symbol "PPP".
 
 
 SOURCE Pacifica Papers Inc.