Northern Pulp mill seeks another extension to prepare for potential sale

The Northern Pulp mill in Abercrombie, N.S., is seeking its second extension on a stay of proceedings this year.

The Northern Pulp mill, which has been under creditor protection after it shut down more than four years ago, is seeking its second extension on a stay of proceedings this year.

Northern Pulp announced it filed documents requesting the extension under the Companies’ Creditors Arrangement until July 18.

The company had previously requested an extension until early May, which Minister of Natural Resources Tory Rushton said the provincial government would approve.

“The company will use this time to further advance preparations for a potential sale of its assets, should a new mill not be feasible,” a news release from the company reads. “Additionally, Northern Pulp will continue discussions with various stakeholders and rights holders regarding the feasibility of establishing a new bioproducts hub in Liverpool, Nova Scotia.”

The company previously said designing and building the bioproducts hub could cost more than $2.5 billion.

As part of a settlement agreement reached between the company and Nova Scotia last year, Northern Pulp launched a feasibility study into a kraft pulp mill.

“The feasibility study examined the economics of developing a bioproducts hub that includes established products such as Northern Bleached Softwood Kraft pulp, as well as emerging products like biogas and biochemicals used in food, pharmaceuticals, cosmetics, and adhesives,” a previous news release read.

Northern Pulp closed its mill in Pictou County in 2020 after it failed to meet the provincial government’s environmental requirements for a new effluent treatment plant.

The hearing for the extension request is scheduled for Friday.

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