Longlac mill to restart, despite debt
It's being reported that Buchanan is working to re-open the Longlac mill in northwestern Ontario less than a year after the Liberal government forgave the company a $24-million loan.
By John Tenpenny
CBC News has learned a company that owes Ontario taxpayers $24 million will be allowed to re-start operations in the northwest without re-paying the debt.
A spokesperson for the minister of Natural Resources said the new Buchanan-owned entity is not responsible for old debts.
“Long Lake Forest Products Inc., which previously owned sawmills in Longlac and Nakina, is bankrupt and no longer holds any licences or wood supply commitments from the province,” the ministry stated in an email response to CBC.
“Two Buchanan group companies have been created and have attained the sawmill assets: Longlac Lumber Inc. and Nakina Lumber Inc. The ministry is prepared to work with the new companies which have emerged from bankruptcy in regards to mill licences. The two new companies … have no stumpage debt with the province.”
The ministry went on to say all debts held by “Long Lake Forest Products Inc. are being dealt with through the Bankruptcy and Insolvency Act legislation and the applicable court processes.”
Click here to read the full article.