Port Alice pulp mill creditors unlikely to get paid, trustee says

The bankrupt mill owner owes at least $272 million

PricewaterhouseCoopers (PWC), acting trustee for the closed Port Alice pulp mill Neucel Specialty Cellulose, says unsecured creditors should not expect to be paid.

Neucel was forced into bankruptcy this April after all but disappearing from Port Alice, leaving hazardous chemicals, millions in debt and hundreds of unemployed workers behind. Neucel vacated the mill in February 2019, and soon after the province had to step in to address hazardous waste which was at risk of leeching into the inlet.

The province submitted four bills for the clean-up to Neucel, which did not respond. Based on that, the court approved a bankrupcty order, assigning PWC as the bankruptcy trustee and receiver.

In a May 19 report, PWC outlined priority creditors, starting with the province which is owed $13.5 million, plus accruing interest. Second in line is Neucel’s parent company Fulida Holdings Canada, a member of Chinese-based Fulida Group, which claims $235 million.

The last secured creditor is Unifor Local 514, which is trying to collect $21 million in unpaid wages to former employees of the mill.

PWC wrote in its report that “there is no prospect of any recovery to the unsecured creditors.” This includes the municipality of Port Alice which entered a claim for $1.8 million in oustanding taxes.

For now, the massive, derelict mill site sits silent, guarded 24/7, paid for by the province.

READ MORE: Dormant Northern Vancouver Island pulp mill declares bankruptcy, owes $272 million

READ MORE: Neucel Specialty Cellulose lays off remaining workers, no written notice given

Do you have something to add to this story or something else we should report on? Email:
zoe.ducklow@blackpress.ca.


Like us on Facebook and follow us on Twitter.

Bankruptcies

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

North Island Elementary students published in short story collection

Five Fort Rupert Elementary students are now bonafide authors

MP asks Minister of Transport for review of safe crew levels on new ferries

The new ferries were approved to run with smaller crew sizes, raising safety concerns

$8,179,919 in grant funding announced for North Island communities

This local funding is part of over $228 million in grants going to B.C. communities.

Port Hardy earns Bear Smart certification

Community committed to living safely alongside bears

Funding police would be ‘most expensive single budget item we would have’ says Port Hardy councillor

‘we’re not panicking — I can’t see our population numbers jumping up that high that quick’

B.C. accommodators need phone lines to light up as in-province travel given green light

Travel restrictions during the COVID-19 pandemic have decimated the tourism and hospitality industries

300 Cache Creek residents on evacuation alert due to flood risk as river rises

Heavy rainfall on Canada Day has river rising steadily, threatening 175 properties

First glimpse of Canada’s true COVID-19 infection rate expected mid-July

At least 105,000 Canadians have tested positive for COVID-19 since the coronavirus was identified

Annual music event in Comox Valley celebrates online instead

Vancouver Island MusicFest holds virtual celebration set for July 10

Police ramp up efforts to get impaired drivers off B.C. roads this summer

July is dedicated to the Summer CounterAttack Impaired Driving Campaign

Migrant workers stage multi-city action for full status amid COVID-19 risks

‘COVID-19 has exacerbated an existing crisis’

Okanagan school drops ‘Rebels’ sports team name, citing links with U.S. Civil War

Name and formerly-used images “fly in the face” of the district’s human rights policy, says board chair

PHOTOS: B.C.’s top doc picks up personalized Fluevog shoes, tours mural exhibition

Murals of Gratitude exhibit includes at least one portrait of Henry alongside paintings of health-care workers

In troubled times: Independence Day in a land of confusion

Buffeted by invisible forces and just plain worn out, the United States of America celebrates its 244th birthday

Most Read