Manitoba Steps In to Assist Sale of Tolko Mill, Deal Still Not Complete
On August 22, Tolko announced its intention to close the kraft paper mill in The Pas, in northern Manitoba on December 2, 2016.
Oct. 18, 2016 (CBC News) - The government of Manitoba has approved a regulation at the request of both Tolko Industries and a potential purchaser of the kraft paper mill in The Pas, Premier Brian Palliser said on Friday (Oct. 14).
Tolko Industries, the largest employer in The Pas, announced in August that it would be closing the mill in early December, putting 332 people out of work.
Earlier this month, sources told CBC that New York-based American Industrial Acquisition Corporation was looking at buying the plant. Pallister confirmed the potential purchaser on [Oct. 14].
The regulation announced [Oct. 14] will allow the company to defer contributions to the pension reserve fund for three years. The change should help facilitate the sale of the mill, said Pallister.
When Tolko sells the mill, it also sells the pension fund obligations to the new purchaser. Under the regulation change, the company buying the mill would have to pay back the three years of deferred contributions over the following five years, said Pallister.
The full story is available on CBC News:
» Manitoba Steps In to Assist Sale of Tolko Mill, Deal Still Not Complete
SOURCE: CBC News