No financing, no future for Northern Pulp's Liverpool bioproduct mill project in the province of Nova Scotia, Canada. Supreme Court of British Columbia extends the company's CCAA stay of proceedings until the end of August and clears the way for a court-supervised sales process for Northern Pulp's assets.
Canada's insolvent pulp manufacturer Northern Pulp Nova Scotia Corporation (NPNS), a Paper Excellence Canada (Domtar) subsidiary, has cancelled its plans to build a CAD2.7bn bleached softwood pulp mill in Liverpool, Nova Scotia. This decision follows the completion of a feasibility study which found that the project would fail to meet the 14 per cent internal rate of return IRR required under a 2024 settlement with the provincial government.
The company will now begin a court-supervised sale of its assets under ongoing protection via the Companies’ Creditors Arrangement Act (CCAA). On 17 July, the Supreme Court of British Columbia has approved an extension of Northern Pulp’s CCAA protection through 29 August 2025, providing the company additional time to continue restructuring efforts and finalise preparations for a court-supervised asset sales process....
