TORONTO—Fraser Papers has filed for creditor protection in Canada and the U.S., the company announced today. It blamed weak pulp and lumber markets and low demand, as well as a pension-funding shortfall for the filing.

Fraser said it had been working for several months to resolve these issues and cut costs. It now hopes to restructure while under protection.

Brookfield Asset Management will provide Fraser with debtor in possession financing, and CIT Business Credit Canada will work to resolve the working capital facility. Combined, that will add up US$20 million to fund operations.

Fraser Papers produces specialty packaging and printing, specialty high-bright groundwood, commodity freesheet and commodity groundwood papers, and towel, hardwood pulp and softwood lumber.

It has operations in New Brunswick, Toronto, Québec, Maine, and New Hampshire, and reported revenues of $688 million in 2008.