Canada's insolvent pulp manufacturer Northern Pulp, part of Paper Excellence Group (Domtar), requires more time to complete the feasibility study for the new NBSK pulp mill in Liverpool, Nova Scotia. The company has applied for and has been granted by the relevant court an extension of the stay of proceedings under Canada's creditor protection scheme CCAA (Companies’ Creditors Arrangement Act) until 2 May 2025.
Northern Pulp intends to use the additional time for further discussions with stakeholders, to advance the feasibility study, and to secure financing for the project. At the same time, the company is preparing for a possible sales process of all its assets, Northern Pulp said in a press statement.
The plans for a new NBSK pulp mill in Liverpool stem from a settlement agreement between Northern Pulp and the Nova Scotia provincial government, reached in May 2024. This agreement resolved the dispute over the forced closure of Northern Pulp’s old mill in Pictou. Under the terms of the settlement, Northern Pulp committed to assessing the viability of a new pulp mill on another site in the Province of Nova Scotia. The continuation of the project depends on achieving a 14 per cent return on investment over 20 years, as agreed to in the settlement agreement and approved by the CCAA court."...
