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Northern Pulp will begin selling off its assets following the collapse of plans to build a new bioproducts mill in Liverpool, Nova Scotia.
The company says it could not reach the 14 percent return on investment required in its 2024 settlement agreement with the province, ending its hopes for a new facility.
Pending court approval, court-appointed monitor Ernst & Young will oversee the asset sales under the Companies’ Creditors Arrangement Act.
Northern Pulp says proceeds will go toward repaying debts, funding pensions, and covering site cleanup costs. Any remaining funds will go to the province.
The company is seeking a stay extension under CCAA until August 29 and will continue maintaining the mill site and managing timberlands in the meantime.
In response, Natural Resources Minister Tory Rushton said the province did everything it could to help the project succeed, including offering financial incentives. He called the outcome disappointing but reiterated Nova Scotia remains open to working with new partners in the forestry sector.
“Our government has always and will continue to support forestry families and communities,” Rushton said in a statement. “We remain open to bold ideas and strong partnerships that put our natural resources to work in ways that benefit all Nova Scotians.”
Northern Pulp operated the shuttered mill in Pictou County and had hoped to pivot to a modern facility focused on sustainable products. The sales process is expected to move forward this summer.
