Judge approves $2M spending to start idle mill
A judge in Halifax will allow the receiver in the NewPage paper mill to spend another $2 million to keep the mill ready for a sale.
The ruling will allow the receiver to buy parts and supplies and hire employees, as it gets ready to re-open, after being in hot idle for a year.
The paper mill closed a year ago and is under court protection from creditors.
Pacific West has a tentative deal, but the final sale hinges on tax rulings from the federal government that have yet to be made.
Under the arrangement, Pacific West will put up $500,000. Around $1.5 million would come from provincial funds set aside to keep the mill operating.
The ruling has a caveat, around $300,000 will be held back for marketing.
On Tuesday Justice John Murphy said he refused to approve the spending at a scheduled hearing because the request was filed after business hours Monday and did not give all stakeholders enough time to respond.