Kenora Forest Products Ontario Sawmill Up For Sale

SEATTLE (Scrap Monster): The Kenora Forest Products northwestern Ontario sawmill has been put up for sale. This follows bankruptcy filing earlier this month by Winnipeg-based Prendiville Industries- the parent company which owns the sawmill facility. The final date for submission of qualifying offers by interested parties is set as Feb 14, 2020. The deadline for possible sale is April 3, 2020.

The sawmill has been shut since end-September this year, impacting 115 workers. The company had cited prolonged weak international and domestic lumber markets and high softwood lumber duties imposed by the U.S. as the primary reasons for the curtailment. Incidentally, almost 90% of the mill’s output was shipped to the U.S.

As per court filings, Prendiville Industries owes more than $28.7 million, including $13.9 million in loans to CIBC, $1.5 million to the Business Development Bank of Canada and almost $3 million to the Northern Ontario Heritage Fund Corporation.

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The press release from Prendiville Industries states that the proceeds from the sawmill sale will be used to pay off its debts. It also intends to come up with a viable proposal to its unsecured creditors.