The court-appointed monitor overseeing efforts to sell a shuttered Cape Breton paper mill has named a second bidder interested in buying and operating the factory.
November 30, 2011
by CANADIAN PRESS
HALIFAX: The court-appointed monitor overseeing efforts to sell a shuttered Cape Breton paper mill has named a second bidder interested in buying and operating the factory.
Ernst & Young said that Pacific West Commercial Corp., based in Vancouver, BC, is one of the four remaining bidders for the NewPage mill in Point Tupper, NS.
A release says the company is associated with Stern Partners, an investment firm in Vancouver, and that Stern Partners also owns Alberta Newsprint Co., of Whitecourt, Alta., and West Linn Paper Co., an Oregon-based mill.
The union representing NewPage workers has already said it has held negotiations with another firm, Paper Excellence, which has headquarters in BC and is a subsidiary of Asia Pulp and Paper.
A spokesman for Ernst & Young said the monitor is expecting final bids for the mill to be completed by Dec. 16.
Ernst & Young has stated there are four bidders for the mill, including two that want to continue operating the mill and two that would close it permanently and sell off its assets.
The mill has been under court protection from its creditors since it was closed in September after struggling with soaring fuel and electricity costs, a strong Canadian dollar and declining demand.
About 1,000 people were lost their jobs when the mill closed.
© The Canadian Press