The news comes just a day after the company announced it was
buying the Red Paper Group's $270m Australian business for $45m, virtually
doubling its paper merchanting operation to more than $500m a year in the
process

Stora Enso had claimed that a debt of $4.8m owed to it by
Boomerang Paper should have been paid by CPI when CPI bought Boomerang, in
March 2004. Judgement initially went with Stora Enso but in the final chapter
of the case the Federal Court has found in favour of CPI.

Stora Enso will now have to pay CPI the $4.8m it received
from the company last year, plus return its legal costs and interest, plus pay
CPI's legal costs and further interest. In total the giant Scandinavian paper
maker will not get much change from $7m in the settlement package.

In a strange twist Stora Enso has been a minor shareholder in CPI
for many years, holding around 7 per cent of the company, and incredibly had a
seat on the CPI board at the time CPI was buying Boomerang. Stora was also CPI's
major supplier, however CPI currently sources none of its stock from Stora.

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