VANCOUVER - Ainsworth Lumber Co. Ltd. (TSX:ANS) said Friday that investors holding 92 per cent of its shares have agreed to support its recapitalization plan.

As well, the company said the required lenders under its remaining term debt facilities have agreed to allow the recapitalization and to amend their credit agreements.

Last week, the Vancouver-based company, which is 58-per-cent owned by members of the founding Ainsworth family, announced a plan that will see its debtholders own 96 per cent of the forestry products firm.

The plans will see the company's $823.5 million in unsecured notes exchanged for equity and US$150 million of new unsecured notes due 2015.

Current shareholders would collectively own four per cent of the company's common shares and receive warrants entitling them to additional shares if the company's market capitalization exceeds US$1.2 billion within five years.

The existing shareholders will also be given the right to receive their share of 30.2 per cent of the net proceeds received by the company, if any, from any final adjudication or settlement of certain litigation.

The plan also calls for appointment of a new board of directors and management team.

Ainsworth owns one mill in each of B.C., Alberta and Ontario and three in Minnesota. It also owns 50 per cent of a mill in Alberta. Privately held Grant Forest Products, which owns a 34 per cent stake in Ainsworth, owns the other half of the Alberta mill.

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