The future is looking bright for St. Marys Paper.
The future is looking bright for St. Marys Paper.
A group of local investors who submitted a bid to purchase and operate the facility have reached an agreement with the Receiver, RSM Richter.
The local group now makes up the shareholders in a newly incorporated company, St. Marys Paper Corp. Richter is seeking approval of the bid on June 4, and the closing of the purchase transaction is scheduled for June 6.
We have worked diligently with the union to negotiate a labour agreement, and then with the province to obtain a comfort letter addressing the needs of the mill, said Gord Acton on behalf of the investors group. Concurrently, we have successfully obtained the financing necessary for the transaction. During the process, we have worked cooperatively with the Receiver and have now come to an agreement which we are confident will receive the approval of the court.
Acton is concerned about the possibility of securing a bio-mass cogeneration facility, something he views as critical to ensuring the financial stability of the mill.
We are continuing to work with the Federal government for their support of innovative technology implementation, he said. Finally, but importantly, we will need the bio-mass cogeneration facility in order to ensure long-term financial stability and jobs at the mill. The quicker we can get a bio-mass cogeneration facility built, the more assured our long-term survival will be, and plans are already underway to restart the mill and clients of the super calendar paper produced by the mill have been contacted to elicit orders. We are planning to make paper within weeks after purchase of the mill, he confirmed.
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