Terrace Bay Pulp will not re-open as scheduled; Mill is for sale
Terrace Bay Pulp will not be restarting operations as scheduled on March 1st.
And now the mill is for sale.
It is believed that the current owner, The Buchanan Group, headed by company founder Ken Buchanan Sr., has lost its financial backer. Terrace Bay Pulp exited creditor protection in the fall of 2010 with the help of $30 million in capital from Toronto lender Callidus Capital Corporation, and a $25 million loan from the province of Ontario.
The community of Terrace Bay, Ontario sensed there was bad news coming about their mill. Union officials said the company unexpectedly paid out about $2 million in vacation pay last month.
The mill announced it was taking 3 months of downtime starting on November 30, 2011.
In 2006 it appeared the mill was about to be torn down, but The Buchanan Group made a deal to transfer to assets of the mill to them from Neenah Paper for $18 million.
Northwest pulp mill for sale (The Chronicle Journal)
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