After getting a whopping $25-million loan from the province earlier this week, Terrace Bay Pulp Friday got a 90-day extension on court-ordered protection from its creditors.
The company‘s request for more time as it puts the finishing touches on a plan to restart the mill, pay off remaining creditors and recall 350 laid-off workers, was granted in Toronto in Ontario‘s Superior Court.
The next time the company must report to the court to provide an update is Feb. 26.
“Now we continue with the job of putting the rest of the pieces of (the startup) plan together,” TBP legal counsel Yves Fricot said Friday.
Fricot said earlier the company is hopeful the mill will resume production before the latest protection period ends in February.
The plant, which has a daily ouput of 1,100 tonnes, was idled eight months ago after pulp prices crashed.
Pulp prices have since rebounded to a healthy level of about US$800 per tonne. The company believes it would be profitable if it were operating at the moment.
