VANCOUVER - Ainsworth Lumber Co. Ltd. (TSX:ANS), which is undergoing a restructuring, said Wednesday it lost $34.2 million in its most recent quarter compared with a profit a year ago as revenue fell nearly 30 per cent.

The Vancouver-based forestry company said the loss amounted to $2.33 per share for the three months ended June 30 compared with a profit of $27.9 million or $1.91 per share a year ago.

Sales in the quarter were $111.4 million, down from $157.5 million.

Oriented strand board market conditions continue to be challenging, as the U.S. housing industry remains in a protracted downturn, the company said.

Ainsworth shareholders are to vote on a recapitalization plan Thursday.

The plan, expected to close by July 29, 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.

Allen, Brian and Catherine Ainsworth - who held the president, chairman and chief executive, and chief operating officer roles at the company, respectively - will also be leaving those positions.

They are the children of David and Susan Ainsworth, who founded the company in 1950 with one mill.

Catherine and Michael Ainsworth, the executive vice-president, have also signed one-year consulting contracts with the firm.

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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