Buchanan Forest Products placed in receivership
March 20, 2009 By Pulp & Paper Canada
Buchanan Forest Products of Thunder Bay, Ont. has gone into receivership, according to reports by the Canadian Pres…
Buchanan Forest Products of Thunder Bay, Ont. has gone into receivership, according to reports by the Canadian Press.
The forestry company runs the wood harvesting operations for the Buchanan Group. On Thursday, CP reported the company laid off salaried staff at eight idled sawmills in northwestern Ontario.
Hartley Multimaki, vice president of Buchanan, said TD Bank, one of their major creditors, requested that Deloitte and Touche increase its role from company monitor to receiver in order to protect TD’s investment.
TD is also the main creditor calling in its loan from Buchanan’s Terrace Bay Pulp mill. The operation, which is about $80 million in debt, filed for court protection from its creditors under the Companies’ Creditors Arrangement Act (CCAA) last week.
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