Northern Pulp gets initial $104M bid for timberlands, seeks court approval
The details are included in the latest court filings from the company as officials prepare to ask a B.C. Supreme Court justice for an extension of their creditor protection proceeding and approval of an initial bid for key company assets.
That bid, referred to as a stalking horse agreement, is from Ontario-based Macer Forest Holdings Inc. A stalking horse bid is an offer to buy a bankrupt company or its assets that is arranged ahead of an auction and typically sets the floor price for the sale. The offer can include protections for the bidder if they are unsuccessful.
According to documents, court-appointed monitor EY determined the stalking horse agreement, which includes timberlands in various parts of the province, Crown land leases and a nursery and seed orchard in Debert, is the best way to proceed.
"The stalking horse purchase agreement benefits the petitioners because, among other things, it assures the petitioners' many stakeholders … there will be a going-concern outcome for the petitioners' timberlands business," said Jean-Francois Guillot, chief operating officer of Northern Pulp parent company Paper Excellence Canada, in a court filing.
Timelines for next steps
If the court approves the stalking horse bid, interest will then be solicited from other known potential bidders with a deadline of Nov. 20.
If no other qualified bidders are received, the stalking horse will be selected and a final approval will be sought from the court. If qualified bids are received, the lead bid would be presented as the starting point for an auction on Nov. 27, with the successful bidder finalized the following day.
The deadline for an agreement would be Dec. 9 and the parties would be in court seeking an approval by Dec. 19.
If Macer is not the successful bidder in the latter scenario, it would be eligible for reimbursement for process expenses and a break fee worth two per cent of the final purchase price. That total fee would be capped at about $3.1 million.
The order of who gets paid
Regardless of the final price, the documents make clear there is no guarantee it will result in money to help cover the cost of cleaning up the mill site in Abercrombie Point, which was also home to a chemical plant at one point.
"If the sale price is insufficient, there will be no funds available to maintain the mill site, and the petitioners will need to seek an appropriate remedy, which may include the bankruptcy of [Northern Pulp]," the documents say.
The company's filing lays out the order in which proceeds from the sale of the timberlands must follow:
The matter is scheduled to be heard on Thursday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
2 hours ago
- CTV News
Cambridge named as hotspot for copper thefts
How does copper wire thefts impact communities? CTV's Karis Mapp shares the repercussions of this rising crime. As copper wire thefts become increasingly popular, part of Waterloo Region is being recognized as a hotbed for the crime. According to a news release published by Bell, the parent company of CTV News, copper thefts are up 23 per cent year-over-year. So far this year, 500 cases involving Bell wires have been reported and 63 per cent of those thefts happened in Ontario. ADVERTISEMENT Thieves will often cut and steal telephone wires, which contain copper. 'Over the past several years, the price for copper has gone up. That's made it a valuable commodity for thieves,' Eric Smith, senior vice president with the Canadian Telecommunications Association, said. 'They try to take copper and sell it as scrap metal for profit.' Telephone wires aren't the only target. Electrical utilities and construction sites have also been impacted. Cambridge, especially the Galt area, has emerged as a particular area of concern. 'We've seen 75 events so far this year alone,' Dana Lohnes, a director of field operations with Bell, said. 'That's up from 44 last year. I would say nationally, [Cambridge] is one of the hottest regions in all of Bell's territory.' When the lines are cut for nefarious purposes, it causes an outage for users. 'This is a health and safety issue,' Smith said. 'If people are in trouble and need to call 911 and their services have been knocked out, they cannot contact emergency services.' Business owners also feel the sting. 'They lose access to their point-of-sale system or to critical internet connectivity that they need to do day-to-day business,' Lohnes said. Rogers is seeing a similar problem, with vandalism blamed for at least 14 service disruptions in Waterloo Region and the surrounding area within the last year. 'Like other providers, we're seeing a troubling rise in vandalism to our network infrastructure across the country, causing service interruptions and affecting Canadians who rely on our networks to stay connected. When these incidents occur, we engage local law enforcement and our crews work around the clock to repair the damage to our fibre. Beyond being a significant inconvenience for our customers, these acts can have a serious impact on public safety,' an emailed statement from a Rogers representative said. Meanwhile, the Waterloo Regional Police Service is investigating the troubling trend. As of Aug. 17, 111 cases of scrap metal or wire thefts under $5,000 have been reported across the region. Almost half of those investigations were in Cambridge. Another 30 reports have been filed for thefts over $5,000. Twenty-three of those cases were in Cambridge. A recent case unfolded on Avenue Road when a downed cable was spotted lying across the street. Police said roughly 100 metres of Bell cable had been severed from the utility pole and a suspect or suspects made off with 30 feet of copper wire. The estimated cost of the damage comes in at $30,000, including repairs and replacement. Telecommunications companies are trying to find a way to cut off the thieves. 'They're investing million of dollars in enhanced security,' Smith said. 'Whether it's monitoring with humans, whether it's monitoring using technology – but you have to remember we've got hundreds of thousands, if not millions, of kilometers of cables traversing this country. You can't keep your eyes on all of it.'
CTV News
2 hours ago
- CTV News
As Whoop-Up Days continues to evolve, so does its impact on the local economy
With Whoop-Up Days in full swing, the local economy is already seeing a boost in spending at the grounds, in restaurants and for travel.
CBC
2 hours ago
- CBC
Delays still expected at YVR while Air Canada flights get back on track
Air Canada is working to ramp up operations after it reached a tentative deal Tuesday with the union representing more than 10,000 flight attendants. As Michelle Morton reports, travellers at Vancouver International Airport are still working around delays and cancellations.
