HALIFAX, NOVA SCOTIA – March 10, 2025 – Northern Pulp filed documents today requesting an extension of the stay of proceedings under the Companies’ Creditors Arrangement Act (“CCAA”) until early May 2025. Northern Pulp will use the time to continue discussions with various stakeholders on the feasibility of a new bioproducts hub in Liverpool, Nova Scotia and to prepare for a potential sales process of its assets.
In accordance with the settlement agreement reached in May 2024 between Northern Pulp (and affiliated companies) and the Province of Nova Scotia, the company is conducting a comprehensive economic feasibility study to evaluate the potential for creating a bioproducts hub in Liverpool. Since May 2024, the company has engaged with a broad range of stakeholders, including Nova Scotia’s forestry sector, municipal, provincial, and federal representatives, and First Nations leaders, ensuring transparency and inclusivity in the evaluation process.
The feasibility study examined the economics of developing a bioproducts hub that includes established products such as Northern Bleached Softwood Kraft pulp, as well as emerging products like biogas and biochemicals used in food, pharmaceuticals, cosmetics, and adhesives. Additionally, the study considered bioenergy initiatives aimed at greening Nova Scotia’s electrical grid, along with a pilot project for carbon capture and storage.
Designing and building a world-class, modern bioproducts hub in Liverpool would require an investment of more than $2.5 billion and combine private and public funding to meet the threshold Internal Rate of Return (“IRR”) of 14% as agreed to in the settlement agreement and approved by the CCAA court. As of today, the proposed new facility's IRR does not meet the threshold IRR. However, the company will use the extension period to continue working to identify and evaluate potential financing opportunities to benefit the project. At the same time the company will begin steps to prepare for a sales process of Northern Pulp’s assets if a new mill is not feasible.
The hearing before the CCAA court is set for March 14, 2025. We will continue to work with and support the Monitor throughout the remaining CCAA process.
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