The province is forgiving more than $24 million in loans in an effort to get people in Terrace Bay back to work.
Ontario’s Superior Court will decide Monday whether the troubled Terrace Bay Pulp will be sold to India-based Aditya Birla Group. The move is recommended by Ernst & Young, the company’s court-appointed monitor.
The mill owes more than $42 million to creditors, the largest being the province of Ontario at $24.1 million.
“We wanted to leverage obviously interested investment in the mill so we elected to forgive that portion of provincial responsibilities,” said Natural Resources Minister Michael Gravelle.
“I believe that was the right decision.
“It was clear that we were not going to be getting the provincial loan back in terms of the offers that were going to be coming forward.”
Aditya Burla’s $250 million plan means 630 jobs between the mill and woodland operations as the company uses the mill to make dissolving pulp, used in textile production.
Gravelle said the province, which was played a key role in negotiations, will be making announcements once the deal is official.
“I will say here that indeed part of that will include job guarantees,” he said.
China-based Tangshan Sanyou Xinda Chemical Fibre Co. made a $220 million bid for the mill last week. Gravelle said that shows there is significant foreign interest in the region’s forestry industry.
“I think there are some significant opportunities in the region.”
