NewPage on the market for months
Posted Sep 8, 2011 05:33:28 AM.
This article is more than 5 years old.
The paperwork a Cape Breton paper mill filed for bankruptcy protection has revealed NewPage has been posting big losses, and its owner has been courting potential buyers for months.
The affidavit filed late Tuesday afternoon shows NewPage has been attempting to find a buyer for the mill since April.
The documents before the Supreme Court of Nova Scotia also showed it lost $50 million US in the last year.
Port Hawkesbury Mayor Billy Joe MacLean has told News 95.7 there is some potential good news.
“In the filing for Chapter 11 they’re also saying they have a couple of companies that are interested in buying it,” MacLean told the Rick Howe Show Wednesday. “That doesn’t say that they’re buying it, but it does say that they have been talking to these people for three or four months. So it raises the optimism in The Strait that there is actually somebody who will be ready (to take over).”
There’s no indication of how much the operation would sell for.
While there are rumours, the Mayor clarifies that a price tag will be established during the bankruptcy process.
The court document state four employee pension plans are underfunded, and the company will have to stop making special payments into those plans.
