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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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<SEC-DOCUMENT>0001181431-10-047909.txt : 20100924
<SEC-HEADER>0001181431-10-047909.hdr.sgml : 20100924
<ACCEPTANCE-DATETIME>20100924140646
ACCESSION NUMBER:		0001181431-10-047909
CONFORMED SUBMISSION TYPE:	3
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20100915
FILED AS OF DATE:		20100924
DATE AS OF CHANGE:		20100924

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Cellu Tissue Holdings, Inc.
		CENTRAL INDEX KEY:			0001295976
		STANDARD INDUSTRIAL CLASSIFICATION:	PAPER MILLS [2621]
		IRS NUMBER:				061346495
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0228

	BUSINESS ADDRESS:	
		STREET 1:		3442 FRANCIS ROAD
		STREET 2:		SUITE 220
		CITY:			ALPHARETTA
		STATE:			GA
		ZIP:			30004
		BUSINESS PHONE:		(678)393-2651

	MAIL ADDRESS:	
		STREET 1:		3442 FRANCIS ROAD
		STREET 2:		SUITE 220
		CITY:			ALPHARETTA
		STATE:			GA
		ZIP:			30004

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Clearwater Paper Corp
		CENTRAL INDEX KEY:			0001441236
		STANDARD INDUSTRIAL CLASSIFICATION:	PAPERBOARD MILLS [2631]
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-34606
		FILM NUMBER:		101088520

	BUSINESS ADDRESS:	
		STREET 1:		601 WEST RIVERSIDE AVENUE
		STREET 2:		SUITE 1100
		CITY:			SPOKANE
		STATE:			WA
		ZIP:			99201
		BUSINESS PHONE:		509.344.5900

	MAIL ADDRESS:	
		STREET 1:		601 WEST RIVERSIDE AVENUE
		STREET 2:		SUITE 1100
		CITY:			SPOKANE
		STATE:			WA
		ZIP:			99201

	FORMER NAME:	
		FORMER CONFORMED NAME:	Potlatch Forest Products CORP
		DATE OF NAME CHANGE:	20080728
</SEC-HEADER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>rrd286974.xml
<DESCRIPTION>FORM 3
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0203</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2010-09-15</periodOfReport>

    <noSecuritiesOwned>0</noSecuritiesOwned>

    <issuer>
        <issuerCik>0001295976</issuerCik>
        <issuerName>Cellu Tissue Holdings, Inc.</issuerName>
        <issuerTradingSymbol>CLU</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001441236</rptOwnerCik>
            <rptOwnerName>Clearwater Paper Corp</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>601 WEST RIVERSIDE, SUITE 1100</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>SPOKANE</rptOwnerCity>
            <rptOwnerState>WA</rptOwnerState>
            <rptOwnerZipCode>99201</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                    <footnoteId id="F1"/>
                    <footnoteId id="F2"/>
                    <footnoteId id="F3"/>
                    <footnoteId id="F4"/>
                    <footnoteId id="F5"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                    <footnoteId id="F1"/>
                    <footnoteId id="F2"/>
                    <footnoteId id="F3"/>
                    <footnoteId id="F4"/>
                    <footnoteId id="F5"/>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Footnotes</value>
                    <footnoteId id="F1"/>
                    <footnoteId id="F2"/>
                    <footnoteId id="F3"/>
                    <footnoteId id="F4"/>
                    <footnoteId id="F5"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">On September 15, 2010, Clearwater Paper Corporation, a Delaware corporation (&quot;Clearwater Paper&quot;), Cellu Tissue Holdings, Inc., a Delaware corporation (&quot;Cellu Tissue&quot;), and Sand Dollar Acquisition Corporation, a Delaware corporation and a wholly-owned subsidiary of Clearwater Paper (&quot;Merger Sub&quot;), entered into that certain Agreement and Plan of Merger, dated as of September 15, 2010 (the &quot;Merger Agreement&quot;), pursuant to which, subject to the satisfaction of certain conditions, Merger Sub will merge with and into Cellu Tissue (the &quot;Merger&quot;). As a result of the Merger, Merger Sub will cease to exist and Cellu Tissue will survive as a wholly-owned subsidiary of Clearwater Paper.(Continued in footnote 2)</footnote>
        <footnote id="F2">Concurrently with the execution of the Merger Agreement, Clearwater, entered into a Voting Agreement, dated as of September 15, 2010 (the &quot;Voting Agreement&quot;), with  Weston Presidio V, L.P., Russell C. Taylor, Taylor Investment Partners and Chipping Wood Fund, LLC (collectively, the &quot;Stockholders&quot;) pursuant to which each Stockholder has agreed, subject to certain exceptions (including as provided in the following sentence), to vote the shares of Cellu Tissue common stock held by them in favor of the adoption and approval of the Merger Agreement. There are currently a total of 11,267,789 shares of Cellu Tissue common stock covered by the Voting Agreement, which represents approximately 55.8% of the issued and outstanding shares of Cellu Tissue common stock (based on  20,186,892 shares outstanding as of September 14, 2010, as represented by Cellu Tissue in the Merger Agreement). (Continued in footnote 3)</footnote>
        <footnote id="F3">In the event that Clearwater Paper is deemed to be the beneficial owner of the shares covered by the Voting Agreement (which Clearwater Paper disclaims as provide below), then under the terms of the Voting Agreement, the aggregate number of shares covered by the Voting Agreement would be reduced (proportionately for each Stockholder) to an aggregate of 50% of all issued and outstanding shares of Cellu Tissue common stock, or 10,093,446 shares. For additional information regarding the Merger Agreement and the Voting Agreement, please see the Schedule 13D filed by Clearwater Paper with the Securities and Exchange Commission on September 24, 2010. (Continued in footnote 4)</footnote>
        <footnote id="F4">As of the date hereof, Clearwater Paper does not own any shares of Cellu Tissue common stock. However, as a result of Clearwater Paper entering into the Voting Agreement, Clearwater Paper may be deemed to share with each Stockholder the power to vote or to direct the voting of such Stockholder's  shares solely with respect to those matters described in the Voting Agreement and, therefore,Clearwater may be deemed to beneficially own within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the &quot;Exchange Act&quot;), greater than 10% of the shares of Cellu  common stock outstanding. Clearwater Paper does not have any pecuniary interest in any of the shares covered by the Voting Agreement. (Continued in footnote 5)</footnote>
        <footnote id="F5">Neither the filing of this Form 3 nor any of its contents shall be deemed to constitute an admission by Clearwater Paper that it is the beneficial owner of any of the shares referred to herein for purposes of Section 13(d) or Section 16 of the Exchange Act, or for any other purpose, and such beneficial ownership is expressly disclaimed.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/  Michael S. Gadd, Attorney-in-Fact</signatureName>
        <signatureDate>2010-09-24</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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