Sawmill near Sioux Lookout enters bankruptcy protection

Another Buchanan Group Sawmill has entered into bankruptcy proceedings.

McKenzie Forest Products in Hudson, located near Sioux Lookout, has filed for bankruptcy protection. A spokesperson with BDO Canada has confirmed that the sawmill filed for bankruptcy on April 26.

The Buchanan-owned mill has been mainly idle for the past three years, and was unsuccessful in its recent bid for a wood supply offer from the province.

At the height of operations in 2006, the mill employed about 360 workers.

Sioux Lookout Mayor Dennis Leney said there has been some discussion with nearby Lac Seul First Nation about its interest in the mill.

Lac Seul Chief Clifford Bull told Thunder Bay Television that the band is ready to explore all opportunities, but their position is contingent upon wood supply.

The first meeting of creditors is scheduled to take place next Tuesday afternoon at the Travelodge Airlane.

Meanwhile, negotiations continue around the sale of two other Buchanan sawmills in Atikokan and Thunder Bay, by the Eacom Timber Corporation.

Buchanan officials were unavailable for comment.