Meadow Lake seeks new financing
August 1, 2006 By Pulp & Paper Canada
The pulp mill in Meadow Lake is looking for new financing, the CBC has reported. HSBC Canada, the mill’s previous b…
The pulp mill in Meadow Lake is looking for new financing, the CBC has reported. HSBC Canada, the mill’s previous banker, wants to disentangle itself from the mill, and as such, the facility is now shopping around for replacement financing so that it can pay the $27.2 million loan back to the bank, CBC further reported.
The mill has been shielded from creditors for six months, due to court protection from bankruptcy. This protection has just been extended to September 15.
The CBC confirmed that court-appointed monitor RSM Richter said a possible buyer has demonstrated significant interest in the facility, although the company in question has yet to be named. A report issued by Richter also references a potential ‘unique option’ to keep the mill up and running.
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