Court grants Northern Pulp extension on creditor protection

By Michael Gorman
CBC News
August 30, 2023
Category: Business & Politics
Region: Canada, Canada East

Officials with the Northern Pulp mill should know soon whether they’ll reach a settlement with the Nova Scotia government over the Pictou County-based operation’s 2020 shutdown and other matters, or if the two sides will find themselves back in court. The company received a 10th extension of its creditor protection during a brief hearing in a British Columbia court on Wednesday. …The B.C. court ordered Northern Pulp and the Nova Scotia government into non-binding mediation in 2022. The most recent court documents indicate that the process could be wrapping up soon. …During the mediation process, the two parties agreed to pause all legal challenges and proceedings. Those matters include the company filing papers to sue the province for up to $450 million because the government-ordered shutdown of Northern Pulp’s effluent treatment facility at Boat Harbour happened 10 years before its lease for the site expired, forcing the mill to close.

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