The CanFibre Group Ltd. has completed the sale of its Riverside, Calif., facility to CFR Holdings, Inc., a company formed by certain creditors of CanFibre of Riverside, Inc., the subsidiary of CanFibre that owns the facility. The sale was approved Nov. 20 by the U.S. Bankruptcy Court for the District Court of Delaware where Riverside's Chapter 11 case is pending.
In a related transaction, Riverside and its creditors also reached a settlement with Stone & Webster Engineering Corp. that resulted in a payment by SWEC of $500,000, the fixing of a claim against the SWEC estate in the amount of $3 million, and the release by SWEC of about $10 million in claims SWEC had asserted against Riverside.
The sale was effective on December 31, 2002 and all payments of the related transaction were completed January 18, 2002.
CanFibre of Riverside will continue to exist as an entity until all distributions to such creditors can be completed, after which Riverside will be liquidated.