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2009-10-16 at 17:57
Mill gets more time
By tbnewswatch staff
Terrace Bay Pulp has received another extension for court protection under the Creditors Arrangement Act. The act allows financially troubled corporations the opportunity to restructure financial affairs and avoid bankruptcy.
Yves Fricot is the legal counsel for the Buchanan Forest Products, the mill's owners. He said the extension is an important step that means the judge understands more time is needed to find re-financing to re-open the idled mill before winter sets in.
Fricot said a firm has recently done a forecast projection of pulp prices for the company. He said the findings were even more optimistic than those that the company has used in financial projections.
Fricot said the company was also excited by the $19 million black liquor subsidy announced for Terrace Bay Pulp last week by the federal government. He said the subsidy will allow the company to invest in its co-generation facility to ensure the mill is energy independent.
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