A referendum was held in Prince Rupert, BC, on July 5 where 71% of people voted yes to the proposition that the cit…
A referendum was held in Prince Rupert, BC, on July 5 where 71% of people voted yes to the proposition that the city invest $20 million in New Skeena.
New Skeena has been troubled the past few months due to the change in management. Last year, the present management set out to transform the old Skeena Cellulose into a low cost producer. New Skeena Forest Products is now a completely different company and is poised to benefit from the $35 million that has been invested by NWBC Timber and Pulp Limited over the past 15 months in a comprehensive restructuring and reorganization effort.
Previous reports said New Skeena CEO Dan Veniez offered a 3% share to the city and a seat on New Skeena’s board of directors, as well as an interest rate of prime plus 5% for the $20 million loan, so that the town would be paid in full within two years.
However, if New Skeena fails to repay the money, the city would end up owning the Terrace sawmill, which would likely end up as security to the lender.
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