HALIFAX - A Cape Breton paper mill that has been shut down for six months has received another extension of its creditor protection as it tries to finalize a sale.
A Nova Scotia Supreme Court judge granted NewPage Port Hawkesbury a 60-day extension on its creditor protection Thursday. It was set to expire Friday.
Mathew Harris of the court-appointed monitor Ernst & Young said he was satisfied with the decision to grant the extra time, despite a request by the company for a 90-day extension.
"The court wants the company to come back and update the court on a number of matters that are outstanding," he said outside court.
"I think it's quite an appropriate result."
Ben Durnford, the lawyer representing NewPage, sought an extension until June 29 to allow the company to proceed with a hearing with the Utility and Review Board and to save on the cost of another court appearance if it was granted a shorter extension.
But Justice Michael Wood said it was important to keep all of the parties' "feet to the fire" and move things along.
"Ninety days seems like it's pushing it," Wood said. "I do have some questions about where we're going."
The monitor is trying to finalize negotiations with Pacific West Commercial Corp., which wants to buy the 50-year-old operation.
The money-losing mill in Point Tupper, N.S., was closed in September, throwing 600 employees out of work, and affecting another 400 forestry contractors.
It was shut down after struggling with soaring fuel and electricity costs, a strong Canadian dollar and declining demand.
