From a news release sent out by communications@paperexcellence.com
Sent: Monday, July 14, 2025 7:50 PM
Subject: Update: Northern Pulp to Initiate Asset Sales Process
Northern Pulp Nova Scotia (Northern Pulp) announced today that, in conjunction with the court-appointed monitor Ernst & Young (EY), it will initiate a court-supervised sales process for the company’s assets under the Companies’ Creditors Arrangement Act (CCAA), as outlined in its settlement agreement with the Province of Nova Scotia in May 2024. This decision follows the completion of a comprehensive feasibility study, which concluded that the company could not achieve the 14% Internal Rate of Return (IRR) required in the settlement agreement to develop a modern bioproducts hub in Liverpool, Nova Scotia.
Pending court approval, EY will manage this asset sales process, ensuring transparency and adherence to CCAA protocols.
Northern Pulp is thankful for the support and collaboration of the Province of Nova Scotia and local stakeholders throughout the feasibility study.
The company also extends its gratitude to Nova Scotia’s forestry sector for its support during its ownership of the Pictou mill and the feasibility study. The forestry sector’s contributions are vital to the province’s rural economy, providing jobs, sustaining communities, and fostering sustainable practices.
Proceeds from the asset sale will repay debt incurred throughout the CCAA process, fund pension plans, and contribute to site maintenance and closure costs. Any remaining funds will be allocated to the Province of Nova Scotia.
The Monitor is seeking to extend the present CCAA stay period until August 29, 2025, to establish a baseline offer. Northern Pulp will continue maintaining the mill site and managing timberland operations during the stay extension.
The British Columbia Supreme Court will hear the request on July 17, 2025.
For more information on Northern Pulp’s CCAA, visit EY’s document centre: https://documentcentre.ey.com/#/detail-engmt?eid=2.