NewPage Port Hawkesbury gets court extension for bankruptcy protection from creditors until March 30, as it continues to negotiate the sale of its Point Tupper, Nova Scotia, paper mill with British Columbia-based Pacific West Commercial

Sandy Yang

LOS ANGELES , January 18, 2012 (Industry Intelligence) –

The deadline for NewPage Port Hawkesbury Ltd. to sell its paper mill in Point Tupper, Nova Scotia, was extended to March 30 by a Nova Scotia Supreme Court judge, reported The Chronicle Herald on Jan. 18.

The stay of proceedings granted will protect the idled supercalendered paper and newsprint mill from creditors as the company continues to negotiate the sale with Pacific West Commercial Corp. of Vancouver, British Columbia.

NewPage’s officers and directors have resigned to avoid a conflict of interest as the negotiations reach their final stages, The Chronicle Herald reported.

The judge named Peter Wedlake as the chief restructuring officer. Wedlake, who is president of insolvency consultant and bankruptcy trustee firm Green Hunt Wedlake Inc., will act in place of a board of directors and help negotiate a final sale agreement and oversee the sale process.

His authority includes being able to sign a sale agreement and submit a plan of arrangement to creditors, said Matthew Harris, court appointed monitor and managing partner of Ernst & Young Inc. in Halifax, Nova Scotia.

Remaining at the Point Tupper mill are its mill manager, Tor Suther and controller, Jacques Beaudoin, who are maintaining the mill in a hot idle so that it can be restarted quickly, reported The Chronicle Herald.

The primary source of this article is The Chronicle Herald, Halifax, Nova Scotia, on Jan. 18, 2012.
 

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.