Port Hawkesbury Paper court decisions today
Updates from Nova Scotia today concerning the purchase of the former NewPage Port Hawkesbury mill:
Creditor Protection Period Extension
Creditor protection period has been extended for another month – until September 28, 2012.
Request for $2 million in spending to restart mill
Nova Scotia Supreme Court justice John Murphy refused to approve $2 million in spending requested to restart the idle mill. The request was filed yesterday after business hours, which did not give time for other stakeholders to respond. Pacific West Commerical Corp. was willing to put up $500,000 and was requesting $1.5 million from the provincial funds used to keep the mill operating. Justice Murphy said, ”I’m not satisfied the circumstances justify the extent of the exemption (of required notice).”
Restructuring agent Peter Wedlake told CBC, “What we’re trying to do is get the mill ready to start producing paper as soon as the deal is closed and to that end there needs to be maintenance done on machinery, there needs to be inspections done because the mill has been closed for a year… some limited supplies just so the mill is in perfect shape, so the mill is ready to roll the day the deal can close and they can start rolling and making paper. The issue is the fall season. They want to be able to take those orders and to confirm with their customers they will be up and operating, so they need to get started in September so they get the fall season for customer orders,” Wedlake said.
The hearing to spend $2 million from the restructuring money will be heard on Thursday of this week.
Municipal Tax Agreement
Later today the court is expected to rule on the 10 year municipal tax agreement the mill has with the Municipality of Richmond County. Pacific West Commercial Corp. wishes to break that deal when it restarts the mill as Port Hawkesbury Paper, reducing its tax bill to one-sixth of its current level at $2.5 million. This story will be updated when the ruling has been made.
Update: Richmond County has lost its bid to stop Pacific West Commercial Corp. from changing its tax arrangement with the County. Justice John Murphy ruled that the mill’s prospective buyer, Pacific West Commercial Corp., can argue its case before the Nova Scotia Supreme Court in a hearing scheduled for Sept. 13.
Judge to hear $2M spending NewPage application (CBC)
Judge extends creditor protection for idle NewPage mill (Chronicle Herald)
Pacific West’s bid to nix mill tax deal can proceed, judge rules (Chronicle Herald)
- Port Hawkesbury Paper likely to sell newsprint machine
- Nova Scotia announces $124.5 million financial package for Port Hawkesbury Paper
- Richmond County is trying to stop Port Hawkesbury Paper from paying less taxes
- Court approves spending $2 million to quickly restart Port Hawkesbury Paper mill
- Canada Revenue Agency rejects Pacific West Commercial Corp's tax deal
- No special power deal being offered to Pacific West Commercial Corp.
- Deal is dead. Pacific West Commercial Corp. will not be taking over NewPage Port Hawkesbury
- Nova Scotia Premier announces new deal to reopen Port Hawkesbury paper mill