Northern Pulp gets initial $104M bid for timberlands, seeks court approval

Northern Pulp’s Timberlands and Assets Up for Sale

The bidding process for Northern Pulp’s timberlands and key assets has begun, with an opening bid of $104 million. However, concerns have been raised that this amount may not be sufficient to cover the costs of cleaning up the former mill site in Nova Scotia’s Pictou County.

The latest court filings from the company reveal that Ontario-based Macer Forest Holdings Inc. has made a stalking horse bid for the assets. A stalking horse bid is an initial offer that sets the floor price for a bankruptcy sale and provides protections for the bidder if they are unsuccessful.

The court-appointed monitor, EY, has recommended that the stalking horse agreement is the best way to proceed. If approved by the court, other potential bidders will have until November 20 to submit their bids. If no other qualified bids are received, the stalking horse bid will be selected, with final approval sought from the court.

However, regardless of the final sale price, there is no guarantee that there will be enough funds to cover the costs of cleaning up the mill site in Abercrombie Point. The order of proceeds from the sale of the timberlands has been outlined, with costs of the sale, repayment of interim financing, pension plan obligations, and repayment of loans to the province all taking precedence.

The matter is set to be heard in court on Thursday, with a decision expected soon. Stay tuned for updates on the bidding process and the future of Northern Pulp’s assets.