Some updates from Terrace Bay Pulp:

• Insurance: Terrace Bay Pulp has general liability insurance until May 31, 2012. The company has made efforts to re-establish Replacement Property Insurance, but the only quote secured totaled $2.2 million per year with a limit of $50 million, subject to a $10 million deductible. This amount was deemed too expensive for a mill that is not operating, so the general liability insurance alone will be maintained.
• Green Transformation Program Projects: Terrace Bay Pulp had been participating in two projects under the federal Green Transformation Program. The company had already received funding of $420,000 for these projects. Terrace Bay Pulp sought and obtained a court order during its creditor protection proceedings authorizing it to finish these projects. At this time, work has not been restarted on these projects and Terrace Bay Pulp has not been able to pay the $420,000 it owes to contractors in relation to work on completed on these projects prior to November 2011. At this time, it seems unlikely that these projects will be fully completed by their March 31, 2012 deadline.
• Sales Process: In regards to the sales process, interested parties have executed confidentiality agreements, and Ernst & Young, as court appointed monitors, said earlier this week that they were expecting to receive letters of intent by the Feb. 15 deadline outlined in its sales process.
• Extension: Terrace Bay Pulp’s creditor protection period is set to expire on Feb 24. The company is seeking an extension to April 27, 2012, allowing it to continue the sales process, sell its other real estate (nine-hole golf course, undeveloped lakefront land and townhouses in the community of Terrace Bay), as well as to complete repairs on the blow tank and stabilize the mill.

Source: Ernst & Young