Leading global law Firm Baker & McKenzie has provided legal assistance to the purchase agreement and leaseback transaction of Landqart AG, a wholly-owned subsidiary of Fortress Paper Ltd. for the sale of its lands and buildings in Landquart, Switzerland, to GAM Investment Management AG on behalf of Procimmo Swiss Commercial Fund II Switzerland, for the aggregate purchase price of CHF 44,500,000.

Fortress Paper is a Canadian-headquartered company, operating internationally in dissolving pulp and security paper products. The Company operates its security paper products business at the Landqart Mill located in Switzerland, where it produces banknote, passport, visa and other brand protection and security papers.

The Purchase Agreement states that upon closing, all of the lands and buildings that are the subject to the Agreement will be leased back to Landqart in a 20-year triple-net lease, to ensure the ongoing operation of its security paper business. The lease is renewable for an additional two 10-year periods on the same terms and conditions as the primary lease with Landqart having certain repurchase rights.

Net proceeds are expected to be used to repay the Company's convertible debentures due in December 2016 and for general corporate purposes.

Yvon Pelletier, President and Chief Executive Officer of Fortress Paper, commented: "The sale and leaseback of the land and buildings located at the Landqart Mill represents an excellent opportunity for Fortress Paper to enhance its balance sheet and improve its financial flexibility."

Baker & McKenzie acted as lead Counsel to Fortress Paper, led by partners Martin Furrer and Samuel Marbacher, and supported by associate Roger Bischof.