Newsprint manufacturer White Birch Paper files for bankruptcy protection in Canada and US

Birch Paper files for bankruptcy protection

TORONTO — Newsprint manufacturer White Birch Paper Co. has filed for bankruptcy protection, citing declining demand for newspapers and the strength of the Canadian dollar.

The company’s U.S. unit, Bear Island Paper Co. LLC, filed a Chapter 11 petition in Richmond, Va., Wednesday, while the parent company filed its papers in Quebec, Canada.

The second-largest newsprint manufacturer in North America is seeking approval in Canada and the United States for 140 million Canadian dollars ($131 million) in debtor-in-possession financing that it has already secured from lenders.

The company says it expects to continue operations as usual while it restructures under creditor protection.

White Birch operates one pulp and paper mill in Ashland, Va., and three in Quebec.