Fate Remains Uncertain for Harmac Pulp Mill
July 18, 2008 - A British Columbia Supreme Court judge is giving a mill-employee group one more week to come up with a plan to buy the Harmac pulp mill in Nanaimo, B.C.
In the meantime, the judge also approved the immediate shutdown of the mill starting [July 17] to reduce costs, as requested by the receiver (Mike Vermette of PricewaterhouseCoopers) for bankrupt Pope & Talbot.
The mill employs about 400 people and supplies chips to Western Forest Products Inc.
Western Forest Products is prohibited by the judge's order from ending its agreement with Harmac while the employees try again to rescue the mill by purchasing it.
The employees lawyer had initially asked for an additional two weeks but the judge decided to allow them only one week to come up with a winning bid.
The receiver says one of the unresolved issues is about $6 million in vacation pay that's owed to the employees.
The receiver also says there are other potential buyers interested in the property but not in running a pulp mill.
SOURCE: The Canadian Press
See related story:
» Harmac awaits its fate (June 16)