NewPage Port Hawkesbury gets timeline extension to sell mill
This morning the Nova Scotia Supreme Court has approved an extension to NewPage Port Hawkesbury‘s creditor protection period.
Now the company has until January 20, 2012 to sell the Cape Breton paper operation. By December 16, the field of 4 bidders will be narrowed to 1.
NewPage Port Hawkesbury said it has sufficient cash reserves to maintain the operations at the mill in a “hot idle” state until January 20, 2012. However, that estimation is based on the assumption the company will collect $3.3 million in HST receivables during the week ending on December 24, 2011. Without that amount of money, there will not be sufficient cash to maintain the hot idle state past Christmas.
The Province of Nova Scotia has indicated it will “look favourably on a request from the Company to provide debtor in possession financing, if required, to ensure operations can be continued while a going concern sale is completed.”
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