Creditors vote in favour of NewPage Port Hawkesbury paper mill settlement
August 15, 2012 - 2:53 PM
PORT HAWKESBURY, N.S. - Creditors have accepted a settlement on what their owed from a Cape Breton paper mill that shut down nearly a year ago.
The court-appointed monitor handling the sale of the NewPage Port Hawkesbury paper mill says 99 per cent of general creditors voted today in favour of the agreement, while 88 per cent of U.S. noteholders supported it.
Pacific West Commercial Corp. has offered to buy the Point Tupper plant, which has been idle since last September, for $33 million.
Under the deal, general creditors and U.S. noteholders stand to receive much less than what they're owed from NewPage.
Mathew Harris of Ernst & Young, the court-appointed monitor, has said it's estimated that about $2.5 million will be available to more than 300 general creditors, although its claim is more than $200 million.
Harris has also said that another $31 million will be given to U.S. noteholders compared to its total claim of about $3 billion.
Pacific West Commercial has said it wants to restart one of the mill's two papermaking machines by Sept. 1.
News from © The Canadian Press, 2012