B.C. judge grants Northern Pulp more time to prepare sales process

Michael Gorman · CBC News

· Posted: May 02, 2025 3:29 PM EDT | Last Updated: 41 minutes ago

A justice successful British Columbia has granted an hold to Northern Pulp's creditor extortion until the mediate of July, erstwhile lawyers for the institution expect to contiguous the tribunal with details of a income process.

Justice Shelley Fitzpatrick granted the company's petition aft a abbreviated proceeding successful B.C. Supreme Court connected Friday during which a lawyer for Northern Pulp explained that aggregate parties person expressed involvement successful submitting a bid connected assets, but determination was not capable clip to enactment done negotiations earlier the May 2 deadline.

Lance Williams told the tribunal the hold would let the institution to absorption connected a alleged "no mill scenario" aft a feasibility survey concluded a projected $2.5-billion caller mill successful Liverpool, N.S., could not make a required complaint of instrumentality greater than 14 per cent.

In that scenario, outlined arsenic portion of a colony statement mill officials signed with the Nova Scotia authorities past year, the institution volition hole a process to merchantability its timberlands.

If the institution goes that way — "which it appears we volition be," Williams told Fitzpatrick — the parties would beryllium backmost earlier the justice connected July 18 seeking support of the income process.

Williams said however the mill assets astatine Abercrombie Point successful Pictou County volition beryllium dealt with is taxable to ongoing discussion. He said the parties volition person a clearer presumption of that contented erstwhile they instrumentality to tribunal this summer.

'The door's not shut'

Although the parties are moving up with the nary mill scenario, Williams told the tribunal that officials with the institution and the Nova Scotia authorities are pursuing different backing options that mightiness assistance execute the guaranteed complaint of instrumentality indispensable to marque the projected task successful Liverpool viable.

In the lead-up to the caller national election, Premier Tim Houston wrote letters to Liberal Leader Mark Carney and Conservative Leader Pierre Poilievre outlining priorities for the state that he'd similar to spot the national authorities absorption on. Included connected that database was financing from the Canada Infrastructure Bank for a caller mill.

Houston told reporters earlier this week that helium believed institution officials were besides exploring financing done backstage and accepted lending channels. He said the company, owned by Paper Excellence Group successful British Columbia, has not asked the state for fiscal support.

"The door's not shut, essentially, if it's imaginable to find capable funding," Williams told the court.