Northern Pulp has received creditor protection until the end of 2020 and was approved for $15 million in financing from third-party lenders. However, it will not be able to use the money to pay retirees and laid-off workers, according to Pulp & Paper Canada.
In a press release, Northern Pulp says:
“Northern Pulp and affiliated companies have filed for voluntary CCAA creditor protection. This is necessary to preserve the value of our assets, complete the hibernation of the Mill in a safe and environmentally responsible manner, and provide needed time to engage with stakeholders and explore alternatives for restarting the mill. We will continue to provide updates throughout the proceedings, and once again, to be clear, we remain committed to restarting the Mill”.
Northern Pulp is located in Nova Scotia, Canada, and produces top quality household products ranging from tissue, paper towel and toilet paper to writing and photo copy paper.