Court approves sale of former Atcon plywood mill to Quebec businessman Pierre Seguin for C$5.2M, plant will be renamed Maritimes Miramichi Plywood
August 17, 2011
– The former Atcon plywood mill in Miramichi, New Brunswick, has been sold for more than C$5.2 million to Quebec businessman Pierre Seguin, the New Brunswick Business Journal reported on Aug. 16.
The judge overseeing Atcon's bankruptcy, Justice Thomas Riordon, approved Sequin's offer of C$5,255,000 on Monday in the Court of Queen's Bench. Seguin represented two numbered companies, 7857861 Canada Inc., and 7013272 Canada Inc.
Sequin offered $2.8 million for the mill in July, but the sale was adjourned after another businessman, Charles Martin from Illinois, appeared in court and argued that his $3.1 million bid had not been considered. Martin made an offer of $3.3 million on Monday.
Sequin also presented a letter to the court offering a further $750,000 that may be paid to Atcon creditors over the next five years. This was not part of the offer, but outlines a plan offering 10% of net profits after tax to creditors, to a maximum value of $750,000.
Robert Jette, who represented PriceWaterhouseCoopers, said the letter was an added benefit to the offer, but noted that the details had yet to be finalized.
Sam Rappos, representing Ernst & Young, also accepted Seguin's offer, which also won the approval of the mill's two largest creditors, the province of New Brunswick and the Bank of Nova Scotia.
Riordon wished Seguin success with the mill, which will be known as Maritimes Miramichi Plywood Ltd. The sale must close by Oct. 14.
After the hearing, Seguin thanked those who had supported his bid and said he hoped to complete a business plan for the mill by mid-September. He noted a condition that the province would add 25,700 m3 to the mill's existing wood allocation of 62,953 m3.
The primary source of this article is the New Brunswick Business Journal, Fredericton, New Brunswick, on Aug. 17, 2011.