#Canada #Nova Scotia #CCAA #Ernst Young #Northern Pulp

Northern Pulp Nova Scotia Corporation's Strategic Move

On August 21, 2025, Northern Pulp Nova Scotia Corporation made headlines by launching a Sale and Investment Solicitation Process (SISP). This initiative, approved by the Supreme Court of British Columbia, aims to dispose of significant resources by offering forest lands and a nursery for sale. These lands encompass approximately 170,000 hectares located in Central Nova Scotia, signifying a pivotal step in the company’s ongoing restructuring amidst the challenges outlined in its Companies' Creditors Arrangement Act (CCAA) proceedings.

Background of the Situation

The origins of this process can be traced back to June 29, 2020, when a group of companies, including 1057863 B.C. Ltd. and Northern Resources Nova Scotia Corporation, received an initial order under the CCAA. This court-ordered restructuring highlighted the pressing need for the company to reassess its assets and financial obligations while seeking a path toward recovery. Ernst & Young was appointed as the monitor during this critical phase, serving to ensure compliance and regulation throughout the proceedings.

The Assets on the Market

The SISP embodies a structured effort to negotiate the sale of valuable assets. Included in the offerings are:

• - About 155,000 hectares of forested lands, with a healthy balance of softwood and hardwood.
• - A nursery capable of producing 3.5 million seedlings annually, with an increased potential of up to 7 million.
• - Additional revenue-generating assets such as gravel pits and leases for wind energy and communication towers.

However, it is vital to note that the pulp mill situated in Pictou County is excluded from this sales process, thereby focusing solely on land resources and related operations.

Financial Aspects and Sale Process

The starting bid, or Stalking Horse Bid, has been set at $104 million, with associated fees climbing up to $3.08 million payable if higher bids materialize. Interested parties must present bids exceeding $107.33 million to remain competitive. This financial framework is designed to stimulate interest and prompt negotiations among potential buyers.

The SISP is divided into two phases, with a deadline for qualified bids established for November 20, 2025. This timeline presents a clear opportunity for potential investors to engage while adhering to specific court-approved guidelines, reinforcing transparency and regulatory compliance.

Conclusion

With Ernst & Young playing a critical role in facilitating this process, the sale of Northern Pulp’s assets marks a significant measure toward recovery and sustainability. Stakeholders and interested parties can review detailed documents related to the CCAA proceedings and the SISP via the monitor's dedicated website. As Northern Pulp navigates this transition period, the market will closely observe how these developments unfold and shape the future of forestry resources in Nova Scotia.

For further inquiries or participation in the bidding process, interested individuals are encouraged to reach out to the contact provided within the Ernst & Young team and explore potential investment opportunities in this pivotal time for Northern Pulp.

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Note: For potential investors and interested stakeholders, it's a critical moment to evaluate the changing landscapes of forestry and resource management in Canada, juxtaposed against ongoing sustainable practices and economic considerations.