Court extends Northern Pulp creditor protection (

Northern Pulp is safe from its creditors for another five months.

British Columbia Supreme Court justice Shelley Fitzpatrick approved the company’s motion on Friday to have creditor protection extended until April 31.

Northern Pulp estimates it has enough money left to run until June. After that it will have to seek permission from the the court and its creditors to draw again on a $50 million financing facility set up by its parent company, Paper Excellence.

The Nova Scotian taxpayer is its largest secured creditor – holding about $86 million in loans to five companies associated with the Pictou County Pulp Mill.

“The Province is generally satisfied with the improved level of communication between the Petitioners and the Province, and also with other interested parties,” reads an affidavit filed with the Court on behalf of the provincial government before Friday’s hearing.
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