SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 22, 1995
JAMES RIVER CORPORATION OF VIRGINIA
(Exact name of registrant as specified in its charter)
Virginia
(State or other jurisdiction of incorporation)
1-7911 54-0848173
(Commission File Number) (IRS Employer Identification Number)
120 Tredegar Street, Richmond, Virginia 23219
(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code: (804) 644-5411
Item 5. Other Events.
On May 22, 1995, James River Corporation of Virginia ("James
River" or the "Company") published a press release
announcing that the Company had completed the sale of 50% of
the chemical recovery and cogeneration facility at its
Naheola pulp and paper mill in Pennington, Alabama, to
UtilCo Group Inc. ("UtilCo") for $59 million in cash. James
River retains ownership of the remaining 50% of this
facility. The cogeneration facility was previously jointly
owned by James River and CRSS, Inc. of Houston, Texas. In
November 1994, James River initiated the exercise of its
option to purchase CRSS' 50% interest in the facility.
James River and CRSS recently reached a settlement allowing
James River to assign the right to purchase CRSS' interest
to UtilCo. UtilCo paid $24.3 million to James River for the
assignment of the purchase option and $34.7 million to CRSS
for its interest in the facility. James River will
recognize a deferred gain of $24.3 million on this
transaction, resulting in reduced operating expenses of
approximately $1.4 million per year.
Item 7. Financial Statements and Exhibits.
(c) Exhibits:
99 Press release dated May 22, 1995, published by the
registrant -- filed herewith
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
JAMES RIVER CORPORATION OF VIRGINIA
By:/s/James R. Hudson, Jr.
James R. Hudson, Jr.
Vice President, Corporate Controller
Date: May 25, 1995
EXHIBIT 99
News Release: Immediate Richard B. Elder (Media)
(804) 343-4785
Celeste Gunter (Financial)
(804) 649-4307
JAMES RIVER ANNOUNCES SALE OF 50% OF COGENERATION FACILITY AT NAHEOLA MILL
RICHMOND, VIRGINIA, May 22, 1995 -- James River Corporation
announced today it has completed the sale of 50% of the chemical recovery
and cogeneration facility at its Naheola pulp and paper mill in Pennington,
Alabama, to UtilCo Group Inc. ("UtilCo") for $59 million in cash. James
River retains ownership of the remaining 50% of this facility.
The cogeneration facility was previously jointly owned by James River
and CRSS, Inc. of Houston, Texas. In November 1994, James River initiated the
exercise of its option to purchase CRSS' interest in the facility. A
settlement was recently reached with CRSS, allowing James River to assign the
right to purchase CRSS' interest to UtilCo. Pursuant to the sale agreement
with UtilCo and the settlement with CRSS, UtilCo paid $24.3 million to James
River for the assignment of the purchase option and $34.7 million to CRSS for
its interest in the facility. James River will recognize a deferred gain of
$24.3 million on this transaction, resulting in reduced operating expenses of
approximately $1.4 million per year.
This $300 million cogeneration facility, which began operations in
March 1993, supplies the Naheola mill with 100% of its black liquor solids
processing, steam and compressed air needs, as well as approximately 60% of
the mill's electricity needs. The Naheola mill is one of James River's
largest mills, producing towel and tissue products and bleached paperboard for
use in tabletop and packaging products.
UtilCo holds equity interests in 16 other independent power projects
in six states and Jamaica and is a wholly-owned, non-regulated subsidiary of
UtiliCorp United. Based in Kansas City, UtiliCorp United provides gas and
electric utility services to approximately 1.2 million customers in eight
states, British Columbia and New Zealand. The company is also engaged in
various non-regulated energy and utility related businesses across the U.S.
and in the United Kingdom.
James River Corporation, headquartered in Richmond, Virginia, is a
leading manufacturer and marketer of consumer products, food and consumer
packaging and communications papers. These product lines include leading
brands such as QUILTED NORTHERN bathroom tissue, BRAWNY paper towels, DIXIE
paper cups and plates, QUILT-RAP sandwich wrap, QWIK WAVE microwave packaging,
EUREKA! recycled copy paper and WORD PRO copy paper. In addition, the company
produces a number of popular European brands for the towel and tissue market.
James River has a current annual sales rate of $6.3 billion.
