Buyer for Mackenzie Mill

Tuesday, August 19, 2008 04:02 AM

Prince George, B.C.- There is a buyer for the Mackenzie Pulp Mill.

The receiver, Price Waterhouse Coopers, will be back in Court Wednesday, asking for the court to approve the agreement of purchase and sale between the receiver and 0832498 B.C. Ltd, which is owned by a company in Alberta which already operates pulp mills. Further details on the purchasers identity are not immediately available.

The request also asks the Court to uphold the Canfor contract to supply chips to the mill.

The price for the mill is $20 million, provided none of the following events take place:

The price will be cut by $7.5 million if the purchaser elects not to take the Canfor fibre supply,
The price will be reduced by $6.5 million if the receiver elects not to assign the Canfor Fibre supply
$0.4 million will be added if the purchaser adds another 10 days to the closing date.

The purchaser wants to run the mill as a pulp mill and assumes all assets and all liabilities, including the dollars owed employees.

The deal is scheduled to close 30 days after the Court approves the sale. That would make the closing date September 19^th.

The closure of the pulp mill cost 251 direct jobs in the community of Mackenzie.

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Posted on Tuesday, August 19, 2008 04:02 AM in News by 250 News

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Comments

Posted by: lunarbase on August 19 2008 4:40 AM

I wish the people trying to purchase the Mill all the greatest and hope that this goes through.

Canfor please show some sort of corporate responsibility to the town of Mackenzie and honor the contract to supply the chips. Easy way to do that, just re-open the mill.

Posted by: acrider54 on August 19 2008 6:12 AM

Good news!

Posted by: metalman on August 19 2008 7:45 AM

O. 250 news:
Please note that there are two pulp mills in Mackenzie; Pope & Talbot, and Abitibi Bowater. I believe this good news story refers to the P & T mill. They say that the purchaser assumes all assets and liabilities, employees will be paid what they are owed, I hope the same is true for suppliers and contractors.
metalman.

Posted by: mackbc on August 19 2008 8:23 AM

Just a correction Metalman ,there is one pulp mill [ P&T] and one paper machine { Abitibi bowater] not likely will the paper machine ever start up because of the glut of news print on the market but it is good news about P&T

Posted by: jus cuz i can on August 19 2008 8:55 AM

Excellent News! I hope that if this sale is approved that the purchaser runs the mill in the community and that there is a confirmed permanent fibre supply.

Posted by: Eagleone on August 19 2008 9:06 AM

Its to bad the workers at the mill couldn't get a package of their own approved like they did in Nanimo....

Posted by: borneo60 on August 19 2008 10:17 AM

Godd news for P&T employees. Not sure if the CanFor sawmills will run inspite of the chip agreement.

All the mobile equipment and some inside mill equipment has gone to other divisions and the leased logyard machines and forklifts etc has been gone since July.

can you say portable chipper?

Posted by: wavoes on August 19 2008 11:10 AM

if this falls through...maybe the union should buy the mill to support all its brotherhood!!!

Yeah Right...that would cut into their profit

Posted by: leoleo on August 19 2008 2:45 PM

http://www.canada.com/vancouversun/news/story.html?id=db6b3360-aaa4-42ae-a18a-91dca3be5dc7

Posted by: metalman on August 19 2008 5:57 PM

Thanks for the correction, Mack. You're right, I did not make the distinction between newsprint & pulp/paper.
I have heard that the market for newsprint was not good, and not expected to improve. Apparently more and more of us are turning to the internet for our news (that makes us 250'ers part of the problem I guess)
metalman.