Still hurdles in the way for Terrace Bay Pulp to restart

Terrace Bay Pulp executives submitted their creditor payment plan to Ontario's Superior Court in Toronto yesterday. That plan will see Terrace Bay Pulp pay $35 million to about 170 creditors.

The court will not be considering Terrace Bay Pulp's repayment plan until July 27.

In the meantime, Terrace Bay Pulp is in discussion with the province of Ontario on various remaining issues and conditions, including fibre supply and the financing to be provided by the province.

Terrace Bay Pulp has retained its license to cut logs in the Kenogami Forest, but would like to gain access to more wood on Crown land.

Another lender, who has come forward to lend the company $40 million, remains anonymous.

The Ontario government is still willing to lend the company $25 million, as long as they also have additional private financing.

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Wait continues for mill restart (Chronicle Journal)