Port Alice Pulp Mill Officially Enters Bankruptcy Proceedings

The Nanaimo Bulletin reports that the dormant pulp mill in Port Alice has officially been put into bankruptcy proceedings over unpaid taxes and other outstanding debts.

The mill is owned by Neucel Specialty Cellulose, which in turn is owned by Fulida Holdings, a large private Chinese textiles company. Neucel owes a total of $272 million to various creditors—including the largest portion of $235 million to Fulida Holdings. Of the remaining $37 million, Neucel owes $1.8 million to Port Alice—which could be closer to $2.2 million when this year’s taxes are billed—$21 million to Unifor Local 514, $13 million to the province, $50,377 in unpaid wages and $388,277 in unpaid BC Hydro bills.

Price Waterhouse Cooper is the appointed receiver, as determined by B.C.’s supreme court on April 14. PWC issued request for proposals on May 5 for fencing and security at the mill, in order to secure the premises while bankruptcy proceedings are underway.

 

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