Mill employees outbid
August 17, 2008 By Pulp & Paper Canada
A higher offer has put the bid of former Harmac mill employees in serious jeopardy, the Vancouver Sun confirmed. Pr…
A higher offer has put the bid of former Harmac mill employees in serious jeopardy, the Vancouver Sun confirmed. PricewaterhouseCoopers has signed a back-up agreement with another purchaser, for a larger sum of money. PWC did not support the employee-backed bid.
The new bid is for $20 million, a hefty $6.8 million more than the employees had put forward. Additionally, it offers more solid terms for creditors of bankrupt Pope & Talbot, the mill’s former owners.
The Vancouver Sun further reported that the new offer is from a company that does not likely have experience in the sector, and that the purchaser is presumably interested in the land.
The union, the Harmac mill’s management and three investors banded together to form a company called Nanaimo Forest Products, with a view to purchase and run the facility. If their bid is successful, close to 210 workers of the 530 who were laid off are expected to return to their jobs.
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