Resolute Forest Products’ costs for closing Bowater Mersey
July 30th, 2012 | Posted in Financial News | 1 comment »
Resolute Forest Products has amended their estimate for the cost they will incur for indefinitely idling the Bowater Mersey newsprint mill in Nova Scotia.
Resolute Forest Products now estimates that it will incur, on an accounting basis, a charge of approximately $18 million for severance and other termination benefits and approximately $77 million of asset impairment charges to reduce the carrying value of the mill assets.
Total future cash expenditures associated with these items are expected to be approximately $17 million, $10 million of which will be incurred in the third quarter of 2012.
After adjusting for minority interests, the severance and other termination benefits are estimated to be $9 million and the asset impairment charges are estimated to be $39 million.
Future cash expenditures, after minority interests, would be approximately $5 million in the third quarter and $4 million thereafter.
Source: Resolute Forest Products
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Resolute sure knows how to burn cash whether its running or shutting down. Not sure how the bonuses are calculated for these guys!