Another piece of the puzzle has fallen into place for Terrace Bay Pulp. The company announced Tuesday that an agreement has been reached in principle with the Province to provide a secure, sustainable and economical wood supply for the mill.
Over the past 10 days, the company has been engaged in intensive discussions with the province to resolve issues necessary to successfully exit bankruptcy protection. Buchanan Company Legal Counsel, Yves Fricot said the company is now satisfied that a secure wood supply is in place to allow the mill to run and be competitive in global markets. Fricot said Terrace Bay Pulp has also received approval from the monitor to begin ordering materials like chemicals that are necessary to the start-up process '
"We wouldn’t be doing it and the monitor wouldn’t be approving it if we weren’t confident in terms of the steps that come between now and the actual production of pulp," said Fricot.
Fricot said a private lender who is key to the restart of the mill is in Terrace Bay doing their due diligence. The Province has also committed $25 million dollars toward the start-up. Fricot said the discussions with the Government have been difficult at times but constructive. He said both the company and the Province want the same outcome and that is to have Terrace Bay Pulp up and running again.
"Hopefully in the middle of August we’ll actually see some pulp coming out of the other side of the mill," Fricot said.
