Doman Industries Ltd is applying to the Supreme Court of British Columbia for an order to extend the stay of proceedings under the Companies Creditors Arrangement Act to September 30.

The company said it needs more time to consider a proposal it has received from the Tricap Restructuring Fund, believed to hold around 18% of unsecured notes.

If the new proposal is accepted, further negotiations with representatives of unsecured noteholders and others will be required before a revised plan of arrangement can be presented to the court.

Implementation of a revised plan is also dependent on the execution of the new forest legislative reform package introduced by the British Columbian government.