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(Canada)--May 23, 2009--SFK Pulp (TSX:SFK.UN) faces higher costs that may threaten its survival as it looks to negotiate a new fibre and bark supply agreement with AbitibiBowater Inc. after losing a court bid to preserve its long-standing deal with the restructuring forestry firm.

"We intend to continue our discussions with Abitibi to establish a fair price for black spruce and jack pine wood chips," SFK president and CEO Pierre Gabriel Cote said in a statement.

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