AbitibiBowater wants to sell 4 idled mills to a scrap metal company

AbitibiBowater is seeking approval from the bankruptcy court to sell 4 paper mills in Ontario, Quebec, and New Brunswick.

AbitibiBowater believes it can recover at least $13.8 million from selling the following idled paper mills:

• Thunder Bay, Ontario


• Donnacona, Quebec


• Dalhousie, New Brunswick


• Beaupre, Quebec

The four mills in question were permanently closed between 2007 and 2009 after 82 to 94 years of operation. They sit on land totalling nearly 200 hectares.

A scrap metal company from Montreal, American Iron & Metal, wants to purchase the mills for $8.7 million. The company would also give AbitibiBowater $100,000 as part of a land swap with the Fort William First Nation Development Corp. for unused, vacant lands.

The scrap metal company would also pay AbitibiBowater 40% of the money raised from the sale of the paper machines. Even if the company is unable to sell the equipment, and instead sells them for scrap, American Iron would pay AbitibiBowater at least $5 million.

As a bonus, American Iron & Metal is willing to assume all environmental liabilities associated with the closed mills.

Read more:

AbitibiBowater hopes to recover at least $13.8 million from sale of idled mills (Winnipeg Free Press)