April 2022 - CCAA Hearing Materials Filed

Earlier this week, we filed our CCAA materials with the Court in advance of our April 29th hearing. Over the past six months, we have made progress toward our goal of operating a transformed mill and have requested a six-month extension to advance the environmental assessment and settlement discussions with the Province and get us closer to operations.

We have requested to continue providing retiree benefits and honour our employee and retiree obligations. The Province refuses to allow us to use our funding to make special top-up pension payments. As per our loan requirements, the special pension payments can only be made if there is progress on settlement discussions acceptable to the lenders. We will continue to work to advance settlement discussions and satisfy the requirements to make the special pension payments.

We are doing everything we can to restart the mill. The Province knows that its forestry sector needs a pulp market to make the transition to ecological forestry possible as the Lahey Report has indicated.

Northern Pulp will continue to defend our business, employees, suppliers, and customers with all the tools at our disposal. All we want is a fair, clear environmental assessment process and for the Province to live up to its obligations. Neither request is unreasonable.

The Province of Nova Scotia has filed an application seeking leave to appeal the mediation order. We are baffled by the Province’s approach which seems designed to stop any progress on a much-needed mill transformation. They have refused to engage in settlement discussions, retroactively changed legislation, and are now appealing the Court’s mediation order that would have us work together with the mediator on the outstanding legal claims and disputes with the Province of Nova Scotia relating to the forced closure of the mill 11-years before the end of the term of an Effluent Treatment Facility (ETF) lease.

We plan to object to the Province’s request for leave to appeal the mediation order and encourage the Province to participate in good faith in the mediation as they are required to do.

An update will be provided following the Court's decision on our requests.