Schreiber mayor hopeful that Terrace Bay Pulp solution can be found

Schreiber Mayor Don McArthur said he’s not surprised the financially troubled Terrace Bay Pup mill is likely seeking creditor protection.

Though he hasn’t been officially notified, McArthur on Thursday said it’s his understanding the Buchanan Group-owned mill, rocked by a fatal explosion last fall and then closed indefinitely, is expected to file court papers under the Companies’ Creditors Arrangement Act.

But all might not be lost, McArthur said.

“I hear they’re optimistic so work will continue to repair the mill from the explosion last October as well as they are hopeful they can continue to work on some of the green energy projects that were funded by the federal government,” said McArthur, whose North Shore community is but a stone’s throw away from Terrace Bay.

More than 300 employees were thrown off the job when the mill was closed, despite a recent $25-million commitment from the province that helped Buchanan reopen the plant after sitting idle for several years.

“So we’re hopeful about those things and hopeful about finding a new buyer,” McArthur said.

On Wednesday Buchanan Group officials refused comment when contacted about rumours the company was about to seek CCAA protection.

Several sources along the North Shore with ties to the mill say the move is imminent. It's believed an application for court protection from creditors is likely to happen before the end of the week.

The reports were further supported by U.S. industry website www.risi.com that says word of the filing is contained in a letter from Buchanan to its major customers. Such a move would protect Buchanan from financial obligations to employees and a long list of creditors.

McArthur said he’ll do anything he can to offer assistance to Terrace Bay Mayor Mike King and his council to help get the mill back up and running.

“If and when there is a role for Schreiber, we’ll be there to help.”

McArthur said there has been preliminary discussion about bringing back employment action centres to help displaced workers move on with the next phase of their career, but no concrete actions have been taken at this time.