NewPage buyers’ list shrinks
Posted Oct 5, 2011 11:43:19 AM.
This article is more than 5 years old.
A lawyer representing the court-appointed monitor handling the sale of the mill told the Nova Scotia Supreme Court that the list of qualified bidders is down from 21 to 14.
“They are going to continue their discussions with management and then determine what structure they can participate in, and continue, if they want to go forward with the pitch,” explained Liz Pillon following proceedings at the Law Courts, Wednesday morning.
The remaining interested parties have until Oct. 14 to make a formal bid with a downpayment of $250,000.
This was one of three issues dealt with in court.
Judge David MacAdam also extended the Point Tupper mill’s creditor protection until Dec. 9.
The mill was shut down last month after struggling with soaring fuel and electricity costs, a strong Canadian dollar and declining demand.
It lost US $50 million over the last year, according to an affidavit NewPage filed with the court.
MacAdam also ruled that the Communications, Energy and Paperworkers union would represent about 1,100 current and former members of the local who are beneficiaries of NewPage’s pension plan as talks with potential buyers continue.
“The overwhelming issue is the selection of a buyer that will continue to operate the mill and with whom we can work out a way to keep the pension plans surviving and not be wound up,” explained CEP lawyer Raymond Larkin.
