Northern Pulp’s request for creditor protection extension granted

The Northern Pulp mill in Abercrombie Point, N.S., is viewed from Pictou, N.S., on Dec.13, 2019. (Andrew Vaughan)

Northern Pulp will now have until July to prepare for a potential sale of its assets thanks to a creditor protection extension.

The Nova Scotia mill, which shut down more than four years ago, filed documents requesting the extension under the Companies’ Creditors Arrangement. According to Sean Lewis with Iris Communications, the court approved the request on Friday.

The company’s creditor protection will now extend to July 18.

“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 previous news release from the company read. “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.”

As part of a settlement agreement between the company and Nova Scotia, Northern Pulp launched a feasibility study into a kraft pulp mill. It’s previously said designing and building a bioproducts hub could cost more than $2.5 billion.

“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.

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

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