Court extends Northern Pulp creditor protection (thechronicleherals.ca)

Highlights first 9 months 2017 (vs. first 9 months 2016): * Paper volume hits new record level of 1 158 thousand tons (up 3 thousand tons), with average price still lower than last year * Turnover up +5% with strong performance in pulp, energy and tissue business: − Pulp sales grow 32% in value, with volume and price both rising − Power sales up 16%, reflecting successful operation of power generation assets − Tissue sales grow by 11% in volume and value * EBITDA of € 300 million in line with previous year and EBITDA/sales margin of 25% (vs. 26%). Click Read More below for additional information.

Norske Skog ASA has successfully completed a EUR 150 million senior secured bond issue with maturity in March 2026. The new bonds will have a coupon of 3 months EURIBOR plus 550 bps. We are satisfied with the strong investor demand and to have secured new long-term financing for the group, allowing us to pursue our strategic growth initiatives, says Sven Ombudstvedt, CEO of Norske Skog. The net proceeds from the bond issue will inter alia be used to refinance Norske Skog’s outstanding bond maturing in June 2022 (“NSKOG01”). The refinancing is part of a group-wide capitalisation process to finance strategic investments into the growing and high-margin recycled containerboard market.

Paper Excellence Canada announced that 1057863 B.C. Ltd, Northern Pulp Nova Scotia, Northern Timber Nova Scotia and other related non-operating affiliates (collectively, “Northern Pulp”) have obtained an initial order under the Companies’ Creditors Arrangement Act (“CCAA”). The initial order stays proceedings against Northern Pulp in order to provide it with an opportunity to restructure its business and financial affairs. Paper Excellence Canada has not sought relief in the CCAA proceedings. Northern Pulp owns a pulp mill in Pictou County, Nova Scotia. The pulp mill, which had been operational since 1967, was forced to stop production by January 31, 2020, after the Province of Nova Scotia’s decision to require Northern Pulp to cease using the Boat Harbour Effluent Treatment Facility (BHEFT). This left the mill with no ability to treat or transport pulp effluent. Since January, Northern Pulp has been conducting a safe and environmentally sound hibernation of the mill, which would allow it to reopen in the event a proposed new Effluent Treatment Facility (ETF) receives the necessary approvals.