A British Columbia Supreme Court judge has approved a settlement agreement between the owners of the Northern Pulp mill and the Nova Scotia government. The Northern Pulp mill in Abercrombie Point, N.S., is viewed from Pictou, N.S., Dec. 13, 2019. THE CANADIAN PRESS/Andrew Vaughan



VANCOUVER - A British Columbia Supreme Court judge has approved a settlement between the Nova Scotia government and the owners of the Northern Pulp mill. The agreement, reached after court-ordered mediation starting in April 2022, addresses the company’s creditor protection proceedings.

Under the settlement, Paper Excellence, the owner of Northern Pulp, will drop its $450-million lawsuit against Nova Scotia and abandon plans to reopen its mill in Pictou County. Additionally, the company will conduct a feasibility study for a potential new kraft pulp mill near Liverpool, N.S.

Lance Williams, a lawyer for Northern Pulp, explained that the agreement helps avoid prolonged and costly litigation. Sean Foreman, representing Nova Scotia’s Justice Department, called the settlement a fair and comprehensive resolution, providing clarity on complex legal and financial issues and protections for pensioners. He also noted that it offers new prospects for the forestry sector.

Northern Pulp has been under creditor protection since June 2020, following the closure of its mill due to non-compliance with provincial environmental requirements for a new effluent treatment plant. The mill had been discharging waste into Boat Harbour near the Pictou Landing First Nation for decades, which was no longer permissible under provincial law.

The agreement also addresses the $99 million in loans owed by Northern Pulp to the province. Paper Excellence has committed to fully funding pensions for both current and former employees. If the feasibility study for the new mill deems it viable, Paper Excellence will pay $50 million to cover costs related to the Companies’ Creditors Arrangement Act and $15 million to the province to settle debts. Additionally, $30 million will be allocated to pension plans.

If the new mill is not viable, the company will pay $30 million to the province to settle debts and $15 million for the cleanup and closure of the Pictou County mill site. Premier Tim Houston mentioned that the full extent of contamination at the Northern Pulp site and the cleanup costs remain unknown until the future use of the site is determined. He assured that environmental standards and processes will be upheld in any future developments.

For now, the company is required to maintain the site under an existing ministerial order to ensure environmental protection.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

You may also like

World Economic Forum Chairman Klaus Schwab Retires After 50 Years of Global Leadership

Klaus Schwab, the 87-year-old founder of the World Economic Forum (WEF), has stepped down as chairman. After leading the influential....

China Returns $55m Boeing Jet as Trump Tariffs Impact Trade

A Boeing 737 MAX originally bound for China’s Xiamen Airlines made an unexpected return to the US on Sunday. The....

China-U.S. Tariff War Rattles Trade Ties and Businesses

Chinese exporters are on edge as a sweeping tariff war with the United States threatens long-standing trade relationships. What started....

Trump’s Commerce Chief Says, Electronics Tariff Exemption Is Temporary

The U.S. government’s decision to temporarily exempt electronics like smartphones and laptops from tariffs may not offer lasting relief. The....

Hudson’s Bay Insider Bid Protocol Raises Sale Speculation

Hudson’s Bay Company (HBC) has taken a significant step in its ongoing creditor protection process. A new internal protocol shared....

Prada to Acquire Rival Fashion House Versace in €1.25 Billion Deal

In a major move reshaping the global luxury fashion landscape, Prada Group has officially announced its acquisition of Italian fashion....

Biggest Drop in Gas Prices Across Canada: What’s Behind the Relief?

Canadians have been noticing a welcome change at the gas pumps. Over the past few weeks, fuel prices have fallen....

Trump Pauses Reciprocal Tariff for 90 Days, Hits China Harder with 125%

President Donald Trump has announced a temporary relief in his sweeping tariff policy, pausing higher levies for 90 days on....

Wall Street Fears Another ‘Black Monday’ Amid Trump’s Tariff Shock

U.S. stock futures plunged Sunday evening, triggering fears of a repeat of Black Monday, as markets reacted sharply to President....

In Canadian Business This Week: Key Events to Watch

As Canada steps into a new business week, several developments are set to shape the national economic narrative. From politics....

Ontario Businesses Fined for Hiring 700 Unauthorized Foreign Workers

A major federal investigation has resulted in significant penalties for three Ontario-based businesses that were found guilty of employing hundreds....

Markets Brace for Turbulence and Recession Fears as Liberation Day Approaches

Investors are on edge as Liberation Day, set for April 2, nears. As the year's first quarter ends on a....