Northern Pulp seeks more time to determine its future in Nova Scotia

Michael Gorman · CBC News

· Posted: May 01, 2025 1:20 PM EDT | Last Updated: 2 hours ago

Officials with Northern Pulp person filed paperwork requesting an hold of the company's creditor extortion arsenic they question to find if determination is simply a viable aboriginal for the cognition successful Nova Scotia.

The application, which volition beryllium heard Friday successful British Columbia Supreme Court, would widen the enactment of proceedings until July 18.

"The institution volition usage this clip to further beforehand preparations for a imaginable merchantability of its assets, should a caller mill not beryllium feasible," a spokesperson said successful a statement.

"Additionally, Northern Pulp volition proceed discussions with assorted stakeholders and rights holders regarding the feasibility of establishing a caller bioproducts hub successful Liverpool."

The institution has antecedently said the tract could see the accumulation of bleached softwood kraft pulp and possibly products specified arsenic biogas and biochemicals for different products.

Court filings connected Thursday, however, rise the question of however apt specified a script would beryllium and whether it would adjacent see Nothern Pulp.

An affidavit from Carlo Dal Monte, vice-president of bequest assets for Northern Pulp genitor institution Paper Excellence Canada, says that since March the institution received expressions of involvement successful submitting a bid for the mill's assets.

"However, this past enactment hold did not supply capable clip for the parties to instrumentality the steps to find whether a stalking equine statement was possible, and if so, which enactment would beryllium the stalking equine bidder, and to draught the indispensable statement and bidding procedures."

A stalking equine bid is simply a pre-negotiated connection to acquisition the assets of a company.

Dal Monte says extending the enactment would sphere the presumption quo portion each parties funny hole and taxable bids and, if aggregate bids are submitted, find which should beryllium enactment earlier the tribunal for consideration.

"The petitioners judge a stalking equine bid, if available, provides a level of stableness for the petitioners and their stakeholders due to the fact that the petitioners' employees, suppliers, and customers person comfortableness that the income process volition effect successful a palmy going-concern merchantability and truthful a continuation of the petitioners' business."

A connection from Natural Resources Minister Tory Rushton said the provincial authorities would not reason the exertion oregon record immoderate further paperwork.

"Our involvement each on has been uncovering caller opportunities for our forestry assemblage and earthy resources," Rushton said successful the statement.

"We cognize a caller pulp mill would make semipermanent benefits for the assemblage and our provincial economy. If a caller mill doesn't hap nether the presumption of this colony agreement, determination are already different opportunities processing to support our forestry assemblage strong."

About a twelvemonth ago, the institution and provincial authorities announced the colony statement that ended years of ineligible wrangling and brought to a adjacent the tumultuous past of the pulp mill's cognition successful Pictou County.

At the time, it was announced that the absorption would displacement to conducting a feasibility survey to see if gathering a caller cognition successful Queens County would beryllium viable.

In March, institution officials announced that the effect of the survey showed that a caller bioproducts hub would outgo $2.5 cardinal and necessitate backstage and nationalist funding. At the time, officials said that program did not conscionable the required complaint of profitability, acceptable astatine greater than 14 per cent. Efforts to unafraid financing were extended until May.

With that day astir to walk and the institution present seeking much time, Premier Tim Houston told reporters connected Wednesday that having a mill successful Nova Scotia is important to the province's forestry assemblage and helium hopes it comes to pass.

But the premier stopped abbreviated of saying whether his authorities would lend toward that effort beyond the accustomed economical improvement measures specified arsenic the superior concern taxation credit, which tops retired astatine $100 million, and payroll rebates.

"It's not thing I've been asked to do," helium said. "If I'm asked to bash [it], I'll measure it."

Opposition questions utilizing nationalist money

Houston said it's his knowing that a caller mill could beryllium viable adjacent without authorities assistance.

"It would beryllium a caller modern mill, truthful it would beryllium an costly undertaking and I recognize that they're looking astatine however that tin beryllium financed with backstage money, done accepted lending."

NDP Leader Claudia Chender said she would person to spot a connection and the numbers to cognize whether it would marque consciousness to enactment nationalist wealth toward a caller mill cognition successful Liverpool.

"We cognize that if creditor protection goes forward, the state is going to person a fiscal liability," she said successful an interview.

Chender said it comes down to what the institution is asking for, however it would payment the province, however galore jobs mightiness beryllium created and what biology safeguards would beryllium successful place.

"And does it marque consciousness for Nova Scotia communities, surely for the assemblage wherever it would beryllium located, and does it marque consciousness for Nova Scotia taxpayers."

Interim Liberal Leader Derek Mombourquette said the perfect script is that the concern lawsuit for a caller mill would not necessitate nationalist money.

"What I deliberation authorities should beryllium doing is mounting the close conditions truthful that backstage assemblage comes and makes the investments successful our province," helium told reporters.

Northern Pulp's cognition astatine Abercrombie Point successful Pictou County unopen down successful 2020 aft the institution failed to unafraid biology support to conception a caller effluent attraction installation to regenerate the 1 astatine Boat Habour, a erstwhile tidal estuary the authorities of the time committed to restoring for neighbouring Pictou Landing First Nation.