B.C. judge grants Northern Pulp more time to prepare sales process
Northern Pulp, a company based in British Columbia, has been granted an extension to its creditor protection until mid-July by Justice Shelley Fitzpatrick in B.C. Supreme Court. The extension was requested by the company’s lawyer, Lance Williams, as multiple parties have shown interest in bidding on the company’s assets. The initial deadline of May 2 was deemed insufficient to finalize negotiations with potential buyers.
The extension will allow Northern Pulp to focus on a “no mill scenario” following a feasibility study that concluded a proposed $2.5 billion new mill in Liverpool, N.S., would not generate the required rate of return. As per a settlement agreement signed with the Nova Scotia government last year, the company will now prepare to sell its timberlands.
Williams informed the court that the company is likely to pursue the no mill scenario, with plans to present a sales process for approval on July 18. Discussions are ongoing regarding the handling of the mill assets at Abercrombie Point in Pictou County, with further clarity expected during the next court appearance.
Despite moving forward with the no mill scenario, Williams mentioned that Northern Pulp and the Nova Scotia government are exploring other funding options to make the Liverpool project viable. Premier Tim Houston has reached out to federal leaders seeking financing from the Canada Infrastructure Bank for the new mill. Additionally, the company is investigating private and traditional lending channels for financial support.
Williams expressed optimism about securing sufficient funding for the project, stating, “The door’s not shut” on potential financing opportunities. The company, under the ownership of Paper Excellence Group in British Columbia, has not requested financial assistance from the province.
As Northern Pulp navigates through the sales process and explores funding options, the future of the company’s assets and operations remains uncertain. The upcoming court hearing in July will provide more clarity on the company’s next steps and potential outcomes.
