Pulp News

Northern Pulp Provides an Update on CCAA Process

Throughout the Stay Extension, the company will continue to manage and maintain the mill and advance plans to transform its operations.

Northern Pulp Nova Scotia, a producer of high-quality Northern Bleached Softwood Kraft pulp used in the manufacturing of a variety of products from tissue and paper towels to fine writing paper, announced that the British Columbia Supreme Court has approved the requests made by Northern Pulp to, among other things, extend the protection under the Companies’ Creditors Arrangement Act (CCAA) to October 31, 2021 (the “Stay Extension”).

The Court has also approved the amendment of the interim financing milestones under the interim financing facility to coincide with the Stay Extension and approved an additional draw of $6.0 million to meet obligations during the extended timeframe.

Throughout the Stay Extension, Northern Pulp will continue to manage and maintain the mill and advance plans to transform its operations.

“The six-month Stay Extension and approved interim financing provide us with the opportunity to advance our transformation plans, which include everything from community engagement to forestry practices to addressing air and water emissions, engage with stakeholders and First Nations for their input and feedback on our proposed transformation, and initiate work on a new environmental assessment for an advanced ETF,” said Graham Kissack, Vice President, EH&S and Corporate Communications, Paper Excellence.

To protect the pensions of employees and retirees and to maintain the viability of Northern Pulp’s skilled workforce, Northern Pulp sought and obtained approval from the Court to obtain a further loan from Paper Excellence to bring the Special Pension Payments up to date as of the end of 2020.

The Court also approved the volunteer members of the Environmental Liaison Committee (ELC), who have been working to identify the issues that lead to the closure of Northern Pulp and potential proposed solutions to address stakeholder concerns, becoming an independent, standing advisory committee. Reporting to the Monitor, the ELC will, among other things, attempt to identify, review and prioritize potential environmental, forestry, marine, and community engagement issues and solutions related to Northern Pulp’s operations, and monitor Northern Pulp’s plan for a mill restart, including every aspect of community engagement, planning, communications, and its building of mutually beneficial relationships with its stakeholders.

Northern Pulp will continue its efforts to engage the Province in timely settlement discussions on outstanding matters, with the objective of seeking to avoid litigation with the Province.

“We believe it is of the best interest of all parties that we resolve all outstanding issues that arise in connection with the closure of Northern Pulp in a timely and cooperative manner,” said Kissack.

On June 19, 2020, Northern Pulp voluntarily filed for protection under CCAA following the Province of Nova Scotia’s decision requiring the Company to cease using the Boat Harbour Effluent Treatment Facility (BHEFT). This left the mill with no ability to treat or transport pulp effluent, resulting in the mill ceasing production.

Further information regarding the CCAA proceedings is available at the Monitor’s website www.ey.com/ca/northernpulp.


Paper Excellence, headquartered in British Columbia, is a diversified manufacturer of pulp and specialty, printing, writing, and packaging papers. The company operates seven mills and a large-scale cargo distribution centre in Canada producing and shipping over 2.8 million tonnes annually with a workforce of more than 2,800. Paper Excellence is poised to continue to grow with its strategy of operational excellence and high-quality, cost-effective products.

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