Judge signs off on Bragg bid for Northern Pulp timberlands
CBC
A British Columbia Supreme Court judge signed off on the $235-million bid from a John Bragg-owned company for the Northern Pulp timberlands during a hearing Tuesday.
In signing the order, Justice Shelly Fitzpatrick noted the “wildly successful purchase price” compared to an initial offer of $104 million for assets of the defunct Pictou County, N.S., pulp mill.
The hearing is the latest chapter in a creditor protection process for the mill that started more than five years ago. It’s playing out in B.C. because that’s where Northern Pulp’s parent company is headquartered.
Bragg’s bid, submitted through his company Tidnish Holdings, was the top price for the approximately 173,000 hectares of land and other assets during an auction in late November that also included two other companies and the Nova Scotia government.
The deal is now subject to approval under the terms of the federal Competition Act, which the court heard Tuesday could take two to six months to complete.
Members of Nova Scotia’s forestry sector and even environmentalists have expressed support for the deal, which they say keeps control of the land in the hands of a Nova Scotia company that takes a long view on how it approaches forestry operations.
Bragg’s family is no stranger to the sector.
In a news release last week announcing his successful pursuit of the land, Bragg said his family has been involved in forestry operations for several generations and has a commitment to good forestry practices.
Property records show that his company Bragg Lumber already controls more than 29,000 hectares of land.
Proceeds from the sale follow a payment order long ago established by the court as part of Northern Pulp’s creditor protection proceedings.
Among other payees, the Nova Scotia government stands to receive about $100 million to cover debts owed to it by Northern Pulp and the pension plan for past and present mill employees will be topped up. Court documents have said that could cost about $37 million.
There is also $15 million intended for maintaining the mill site at Abercrombie Point and implementing a closure plan. Although the company submitted that plan to the provincial government months ago, Environment Minister Tim Halman so far has refused to provide any details about it.
Fitzpatrick also approved an extension of Northern Pulp's creditor protection to April 30, 2026, which is intended to provide time for the deal with Tidnish to close and to continue working on the closure plan.
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