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Paper Recycling July 09, 2020 05:00:51 PM

Unifor Calls For Provincial Support to Northern Pulp's DIP Financing

Paul Ploumis
ScrapMonster Author
The government had asked for additional time to review financing terms.

Unifor Calls For Provincial Support to Northern Pulp's DIP Financing

SEATTLE (Scrap Monster): Unifor has urged the Nova Scotia administration to support Northern Pulp’s efforts to secure Debtor-In-Possession (DIP) financing, which in turn could ensure severance benefits to hundreds of employees.

Jerry Dias, Unifor National President noted that the actions by the provincial government, being one of the largest creditors to Northern Pulp, will play a key role in determining whether the company could be able to honor its obligations to the workers. The union does not find any reason why the government should oppose the financing plan, he added.

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Meantime, Linda MacNeil, Unifor’s Atlantic Regional Director hoped that the parties will ultimately come  financial agreement, that will allow the members to be paid and to ensure that maintenance and cleanup activities at the mill site continue as per schedule during the hibernation period before the total shutdown.

The company had earlier notified the union that a failure to reach an agreement between the company and the government with regards to third party financing could lead to cancellation of previously planned severance payment to workers by end-July this year. The government had asked for additional time to review financing terms.

Paper Excellence, which owns Northern Pulp mill, assured that it is committed to extend all possible support to employees and maintaining the opportunity for long-term employment at the mill.

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