Displaying items by tag: White Birch Paper Company
Quebec government works to re-open White Birch mill
The Stadacona mill in Quebec City has been closed since December, and White Birch said the closure will be permanent following the union's rejection of its final offer.
According to Canadian Press, Sam Hamad, Quebec's economic development minister, met with company president Christopher Brant in Montreal. Hamad then said a solution to the mill closure will be reached between its owner and the workers.
But, Canadian Press says, Quebec's Natural Resources Minister Clement Gignac said taxpayers won't be put on the hook to keep the facility open, suggesting the private sector would have to make major investments to re-open the doors.
White Birch presents ultimatum to Stadacona employees
White Birch Paper Company has presented a proposal to the employees of the idled Stadacona paper mill in Quebec City, Quebec, which it calls "the final opportunity to implement the savings necessary for Stadacona to avoid permanent closure."
White Birch temporarily idled the newsprint facility on Dec. 9, 2011.
The company statement says the proposal reflects significant manufacturing cost disadvantages, as well as the ongoing deterioration of economic conditions in the newsprint industry.
Commenting on the proposal, Christopher Brant, president, White Birch Paper Company said, "While I remain acutely aware of the pain that Stadacona's idling has already imposed on our valued employees and community, I must emphasize that the situation at the mill is extremely grave. Without significant reductions in salary, pension benefits and other costs Stadacona simply cannot survive."
Brant continued, "Acceptance of this proposal is essential for the mill to resume operations and will help ensure the mill's long-term viability, while reestablishing its position as a valued employer in the Quebec community."
White Birch is a manufacturer of newsprint, directory paper and paperboard, with three mills located in Canada.
Source: pulp and paper canada
White Birch sale approved by Quebec court, still needs U.S. approval
The US$236-million sale of White Birch Paper Company, which owns three newsprint mills in Canada, to BD White Birch Investment, LLC, has been approved by a Quebec court. The company has been in bankruptcy protection since February.
The sale of White Birch's assets also includes a mill in Virginia, and the deal still needs approval of the U.S. bankruptcy courts.
The majority owners of BD White Birch are funds managed by Black Diamond Capital Management, LLC and its affiliates, with Caspian Capital Advisors LLC also participating as equity owners.
White Birch indicated that operations will continue as normal during the sale process. The sale is expected to be completed in late November 2010, subject to certain regulatory approvals and other conditions.
White Birch Paper is the parent company of the F.F. Soucy mill in Rivière-du-Loup, the Stadacona mill in Quebec, and Papier Masson in Gatineau. The company's U.S. subsidiary, Bear Island Paper Company, is also included in the sale
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According to a story in the Ottawa Citizen on Sept. 30, the deal is conditional on terminating benefit plans and negotiating new union contracts with employees.
While the Papier Masson workers could lose defined-benefit pensions and have production rules change, they appear safe for now from having the mill close, the Citizen notes.
The Communications, Energy and Paperworks Union said that any buyer should respect the collective agreement but declined further comment on the deal.
The Ottawa Citizen story pegs the value of the four mills at almost $700 million, but notes that the mills carry more than $650 million in debt and many creditors will only get a small slice of the sale price.
The complicated auction process that preceded BD White Birch's winning bid appears aimed at winning the support of various classes of creditors who still must vote in favour in order for White Birch to emerge from bankruptcy, states the Ottawa Citizen.
source: pulpandpapercanada