A judge in British Columbia has granted Northern Pulp creditor protection until the end of 2020 and approved an interim financing agreement that will see the mill receive $15 million from third-party lenders. Justice Shelley Fitzpatrick delivered her decision Thursday in B.C Supreme Court via teleconference following two days of arguments. The ruling means the mill, which was facing a cash crunch, now has the liquidity to get it to the end of the year as it works toward completing environmental cleanup work required by the Nova Scotia government at a site in Pictou County and works on a restructuring effort in hopes of eventually reopening the operation.
The Navigator Company announced today that it will apply an energy, logistics and commodities surcharge to its tissue products, amounting 15% of the sales price, to offset the significant and unexpected raising of its input cost.
Its application will be effective for all dispatches from 15 th of January onwards. The continuity and amount will be regularly reviewed based on the evolving market conditions.
The global change in the economy, with dramatic impacts, affects the overall industry with unsustainable increase in input costs, such as energy, natural gas, pulp, chemical products, packaging materials, wood pallets and logistics.
Navigator believes that this exceptional measure is imperative to support the long-term sustainability of its business model and of the overall supply chain.
The Company will continue working to reinforce its partnerships with its Clients, strengthening its value proposition across several dimensions, appreciating the support provided by its large customer base.