Creditor protection for Nova Scotia pulp mill shut down by activists

Creditor protection for Nova Scotia pulp mill shut down by activists

Creditor protection for the shuttered Northern Pulp mill in Pictou, Nova Scotia, was approved last night after the Mill applied for help to close the facility down in an “environmentally responsible manner” and to “explore alternatives for restarting the Mill.”

The agreement includes salary protection for laid off employees.

The ruling was handed down on Thursday by Justice Shelley Fitzpatrick in British Columbia, where the mill's parent company Paper Excellence Canada is located. 

Northern Pulp first opened in 1967 and was shut down earlier this year by the former Liberal premier Stephen McNeil. The move killed up to 350 jobs at the plant and 2,700 forestry-related jobs.

McNeil stepped down earlier this week.

As reported by CBC,

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.

Before the mill was shut down, our own Sheila Gunn Reid covered the un-scientific reasoning behind the closure:

The decision comes after a promise McNeil made to the Pictou Landing First Nation in 2015. He assured the band that Northern's effluent treatment facility at Boat Harbor, next to the First Nation, would have to close. The band alleged that Boat Harbor was heavily polluted after five decades of treating the mill’s wastewater, and the government”s decades long lack of action amounted to environmental racism.

Pictou received Nova Scotia's first wave of Highland Clearance immigrants in 1773.