Fortress completes sale of Quebec co-gen plant
By Cindy Macdonald
Fortress Paper Ltd. and its subsidiaries have successfully closed the asset purchase agreement entered into with LSQ Energy, L.P. and LSQ Development, L.P., previously announced on June 23, 2016.
Nexolia Bioenergy Inc. is purchasing a non-operating pulp mill and sawmill located in Lebel-sur-Quévillon, Qué., from Fortress Paper. The sale includes the buildings and equipment, as well as the energy generation, connection and transmission plant for an aggregate purchase price of $15.36 million.
Nexolia Bioenergy Inc. is a private company focused on investing in natural resources, renewable energy.
Fortress Paper had intended to re-open the LSQ mill, and signed an electricity supply agreement with Hydro Québec in 2012. Restarting the mill’s co-gen facility was intended to reduce production costs for specialty cellulose.
Concurrent with the closing, Fortress assigned and transferred a $7.0 million note received from LSQ to Investissement Québec (IQ), acting on behalf of the Québec Government, as early repayment of the principal amounts due in 2017 pursuant to the terms of the indebtedness owed to IQ by Fortress Specialty Cellulose Inc.