Crown Vantage Drops Plan to Sell Paper Mill

Crown Vantage Inc., a spinoff of papermaker Fort James Corp., reversed an earlier decision to sell its Louisiana paper mill on the same day it reported a second-quarter loss, sending its shares down as much as 63%. The maker of paper and specialty packaging owes Richmond, Va.-based Fort James $133 million from the 1995 spinoff. Crown Vantage stock plunged $4.25 to $3 in in Nasdaq trading. In May, Oakland-based Crown Vantage said it was looking to sell its St. Francisville, La., paper mill. Since then, however, demand for paper has continued to decline. Crown Vantage said its second-quarter loss before a charge was $10.7 million, or $1.15 a share, compared with $10.9 million, or $1.22, a year ago.