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Friday July 31 2015
7:21 AM EDT
2014-01-31 at 16:49

Money owed to province by Buchanan companies unlikely to be paid, MNR concedes

By tbnewswatch.com

Money owed to province by Buchanan companies unlikely to be paid, MNR concedes

A forestry company that owed tens of millions of dollars to taxpayers is off the hook. 

Buchanan Forest Products, through a number of different company names, was in debt to Ontario for $29 million in stumpage fees.  But officials with the Ministry of Natural Resources confirm the money will never be collected.

At one time Buchanan owned and operated eight mills across Northwestern Ontario. 

In 2009, all of those mills had been idled and staff let go when the various companies went into receivership. 

The forestry licenses held by different Buchanan companies were terminated between 2011 and 2013. 

Officials at the MNR say the government did not forgive the $29 million.  But the debt was "wound down" at different times as a result of the outcomes of individual bankruptcies. 

All uncollectable debt owned by the bankrupt Buchanan companies was written in late June of last year. 

The $29 million is in addition to a $24-million government loan to Buchanan that was also forgiven. 

That money was used to restart Terrace Bay Pulp.

(Thunder Bay Television)


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