On June 15, 2009, we filed a motion with the U.S. Court to reject an amended and restated call agreement (the “Call Agreement”) in respect of Augusta
Newsprint Inc. (“ANI”), an indirect subsidiary of The Woodbridge Company Limited (“Woodbridge”) and our partner in ANC. ANC is the partnership that
owns and operates the Augusta, Georgia newsprint mill. The Call Agreement obligated ACSC to either buy out ANI at a price well above market, or risk
losing all of its equity in the joint venture pursuant to forced sale provisions. The U.S. Court granted our motion on October 27, 2009 and approved the
rejection of the Call Agreement. Our counterparties to the Call Agreement filed a Notice of Appeal with the U.S. Court on November 3, 2009. If the U.S.
Court’s judgment is not upheld and a forced sale is consummated, there can be no assurance that we would be able to recover any or all of our 52.5% equity
interest in ANC, which as of December 31, 2009, was approximately $100 million.
'Courts of bankruptcy are essentially courts of equity, and their proceedings inherently are proceedings in equity.'
