UPDATE 1-Georgia-Pacific gets Canada nod to buy Grant assets

* Says Canada govt approves buy of Ontario facilities

* Gets approval to buy Englehart, Earlton facilities

* Says further approval pending in U.S. court

April 19 (BestGrowthStock) – Paper and packaging firm
Georgia-Pacific LLC [KCHINP.UL] said the Canadian government
approved its acquisition of certain facilities in Ontario of
bankrupt rival Grant Forest Products Inc.

Georgia-Pacific, which received approval from the Minister
of Industry late Friday for buying the Englehart and Earlton
facilities, said it plans to continue operations at Englehart
without any major changes in employment levels.

The Atlanta-based privately held company will source all
timber for the operations from Canadian forests and make
substantial investments in the Englehart facility, it said in a
statement.

Earlier in March, Georgia-Pacific said it won an approval
from the Ontario court to buy certain facilities from Grant.
[ID:nSGE63008L]

Further approval is pending in U.S. bankruptcy court,
Georgia-Pacific said.

Grant Forest Products filed for creditor protection under
the Companies’ Creditors Arrangement Act (CCAA) in June 2009,
while its U.S operations filed a Chapter 15 proceeding earlier
this month.

The Chapter 15 case is In re: Grant U.S. Holdings GP, U.S.
Bankruptcy Court, District of Delaware, No.10-11135. (Reporting
by Aftab Ahmed in Bangalore; Editing by Unnikrishnan Nair)
([email protected]; within U.S. +1 646 223 8780;
outside U.S. +91 80 4135 5828; Reuters Messaging:
[email protected]))

UPDATE 1-Georgia-Pacific gets Canada nod to buy Grant assets