HALIFAX – The court-appointed monitor overseeing efforts to restart a shuttered Cape Breton paper mill says final offers to buy the plant are expected in 2 1/2 weeks.
Mathew Harris, a spokesman for Ernst & Young, said outside court Tuesday that there’s a clear timeline to conclude negotiations with four remaining bidders interested in the plant.
“We’ve drawn a rather firm line with the potential purchasers to say get your final offer to us with as few conditions as possible by Dec. 16,” he said in an interview.
He made the statement after the Supreme Court of Nova Scotia approved an extension of the creditor protection process from Dec. 9 to a new deadline of Jan. 20.
Harris said two of the bidders are interested in operating the factory, while two would wind it up and sell off its assets.
In court documents arguing for the Jan. 20 extension, the paper mill argued it has made progress on a sale of assets and that an extension would give it a reasonable opportunity to conclude that process.
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The mill was shut down in September after struggling with soaring fuel and electricity costs, a strong Canadian dollar and declining demand.
About 1,000 people were thrown out of work either at the mill or in forestry operations when the plant closed.
The judge has ordered the parties to return to court on Dec. 21 to report on their progress.
Harris said the additional time will allow the companies to complete their financial analysis on the prospects of the idled mill restarting and making a profit.
The company lost US$50 million over the last year, according to an affidavit NewPage filed with the court.
Archie MacLachlan, a vice president of the union that represents workers at NewPage, said his executive has held talks with Paper Excellence and will now hold talks with a second potential buyer.
“It’s on hold, we’re not done with them yet,” he said of the talks with Paper Excellence.
He said the Communications, Energy and Paperworkers union will now have more time to hold talks with the second potential buyer.
The court also officially recognized a separate group of non-union pensioners and non-union employees as a group that has its own status and their own lawyer in the court process.
The group, which was created to preserve the pensions of non-union retirees, has argued that its members may have different concerns from union members in the talks aimed at restarting the factory.
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