Another major hurdle has been cleared Tuesday in the ongoing efforts to revive Terrace Bay Pulp.
The company has announced its Plan of Arrangement has been sanctioned by the Ontario Superior Court, clearing the way for the company to exit bankruptcy protection
The pulp mill shut down 18 months ago and entered CCAA. The Court's decision is subject to a three week appeal period which will expire on Aug. 17. That is also the planned closing date for transactions related to the company's exit from creditor protection.
Over the next three weeks, closing documentation will be finalized and the lender will complete its ongoing due diligence. The province has granted the company with a $25 million loan provided the company secure a private lender. The monitor has also approved the expenditures related to mill start-up and the return of affected employees.
50 employees are expected back at work next week. Terrace Bay Pulp expects to have its full work force, roughly 300 people, back on the job by Aug. 16.
