Written by NNL Staff
Thursday, 19 November 2009 14:41
TERRACE BAY - Terrace Bay Pulp states, "We are pleased to announce that the Government of Ontario has agreed to participate in the financing of the restart of operations at Terrace Bay Pulp Inc. Specifically, the Government has indicated that it is prepared to support the mill through a $25 million dollar term loan. This critical and important piece of the restructuring process will now allow the mill to complete financing, make arrangements with creditors and, once these steps are completed, commence a mill start up".
Since Terrace Bay Pulp was required to seek CCAA protection on March 11, 2009, the Company has worked closely with stakeholders - and in particular with the Government of Ontario through the offices of Michael Gravelle, Minister of Northern Development, Mines and Forestry and the local municipalities - to put together a plan which will allow the mill to exit from CCAA protection and resume operations – sustainably and for the long term.
When fully operational, the pulp mill and its supporting industries have an annual economic footprint in Northwestern Ontario of approximately 2.45 Billion dollars. The Company’s return to normal operations has been affected primarily by the continuing credit crisis.
"We believe that this announcement is the foundation for a positive path forward," states Yves Fricot, legal counsel "The next steps for the company include completing the financing package, reaching agreement on a CCAA plan of arrangement with the creditors of Terrace Bay Pulp and, planning for a mill start up".
"Terrace Bay Pulp will be meeting with its employees and other stakeholders in the coming days. We will be seeking court approval for an extension of creditor protection during this process and we hope to get approval for a schedule which includes the completion of restructuring and the start up of the mill," adds Fricot. "We understand and appreciate how difficult and trying the last months have been for our employees, their families and all of those who have a stake in the future of this mill. As we move forward with this process we remain committed to keeping all stakeholders informed".
Last Updated on Thursday, 19 November 2009 16:47
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