Northern Pulp Nova Scotia and certain affiliates file for voluntary CCAA creditor protection
Paper Excellence Canada announced that 1057863 B.C. Ltd, Northern Pulp Nova Scotia, Northern Timber Nova Scotia and other related non-operating affiliates (collectively, “Northern Pulp”) have obtained an initial order under the Companies’ Creditors Arrangement Act (“CCAA”). The initial order stays proceedings against Northern Pulp in order to provide it with an opportunity to restructure its business and financial affairs. Paper Excellence Canada has not sought relief in the CCAA proceedings. Northern Pulp owns a pulp mill in Pictou County, Nova Scotia. The pulp mill, which had been operational since 1967, was forced to stop production by January 31, 2020, after the Province of Nova Scotia’s decision to require Northern Pulp to cease using the Boat Harbour Effluent Treatment Facility (BHEFT). This left the mill with no ability to treat or transport pulp effluent. Since January, Northern Pulp has been conducting a safe and environmentally sound hibernation of the mill, which would allow it to reopen in the event a proposed new Effluent Treatment Facility (ETF) receives the necessary approvals.