UNIFORET INC. Expects Not to be Able to Comply with its Next Interest Payment Relating to its US $125 Million of 11-1/8 % Senior Notes due 2006

Apr 12, 2001, 01:00 ET from Uniforet Inc.

    MONTREAL, April 12 /PRNewswire/ - UNIFORET INC. announced today that as a
 result of continued losses in its operations in the last 20 consecutive
 quarters and unfavourable conditions in the pulp and lumber market, its
 authorized lines of credit totalling CAN $20 million are currently fully
 utilized and the Company does not have access to other short-term sources of
 financing. Uniforet expects that it will not be able to comply with its next
 interest payment relating to the US $125 million of 11-1/8% Senior Notes due
 2006 under its long-term debt, which amounts to US $3.4 million (CAN $5,2
 million) and is due April 15, 2001.
     Uniforet Inc. is an integrated forest products company which manufactures
 softwood lumber and bleached chemi-thermomechanical pulp ("BCTMP"). The
 Company carries on its business through its subsidiaries located in Port-
 Cartier (pulp mill and sawmill) and in the Peribonka area (sawmill) in Quebec.
 The Company's securities are listed on The Toronto Stock Exchange under the
 trading symbol UNF.A, for the Class A Subordinate Voting Shares, and under the
 trading symbol UNF.DB, for the Convertible Debentures.
 
 

SOURCE Uniforet Inc.
    MONTREAL, April 12 /PRNewswire/ - UNIFORET INC. announced today that as a
 result of continued losses in its operations in the last 20 consecutive
 quarters and unfavourable conditions in the pulp and lumber market, its
 authorized lines of credit totalling CAN $20 million are currently fully
 utilized and the Company does not have access to other short-term sources of
 financing. Uniforet expects that it will not be able to comply with its next
 interest payment relating to the US $125 million of 11-1/8% Senior Notes due
 2006 under its long-term debt, which amounts to US $3.4 million (CAN $5,2
 million) and is due April 15, 2001.
     Uniforet Inc. is an integrated forest products company which manufactures
 softwood lumber and bleached chemi-thermomechanical pulp ("BCTMP"). The
 Company carries on its business through its subsidiaries located in Port-
 Cartier (pulp mill and sawmill) and in the Peribonka area (sawmill) in Quebec.
 The Company's securities are listed on The Toronto Stock Exchange under the
 trading symbol UNF.A, for the Class A Subordinate Voting Shares, and under the
 trading symbol UNF.DB, for the Convertible Debentures.
 
 SOURCE Uniforet Inc.