BC Court Endorses $235M Acquisition of Northern Pulp Timberlands by Bragg

Post by : Mina Rahman

In a significant turn of events in the Northern Pulp insolvency saga, a judge from the British Columbia Supreme Court has approved the $235-million sale of the company’s extensive timberland assets.

Justice Shelly Fitzpatrick sanctioned the agreement during a court session, underscoring the competitiveness of this final bid compared to a previous offer rated at just over $100 million. This ruling is an integral part of the ongoing creditor protection measures linked to the now-closed pulp mill located in Pictou County, Nova Scotia—a legal journey that has continued for more than five years.

The winning bid came from Tidnish Holdings, owned by Nova Scotia entrepreneur John Bragg. This acquisition encompasses around 173,000 hectares of forestry land along with associated assets, marking it as a notable forestry land transaction in the province in recent times.

Despite the mill's operations being based in Nova Scotia, the judicial proceedings are unfolding in British Columbia, where the parent company of Northern Pulp is headquartered. This sale followed a competitive auction held in late November, garnering interest from various bidders, such as private entities and the provincial government.

Before the deal’s finalization, it must still gain approval under the federal Competition Act, a process anticipated to take several months.

This transaction has been positively received by forestry experts as well as several environmental groups, who perceive it as a beneficial move towards maintaining local ownership of forests under sustainable management. Bragg has highlighted his family's legacy in forestry and commitment to environmental stewardship, already owning substantial forested areas throughout the province.

Proceeds from the sale will be allocated according to a court-sanctioned payment framework. The government of Nova Scotia is expected to recover approximately $100 million in outstanding debts, with around $37 million earmarked for stabilizing pensions for current and former mill staff.

An additional $15 million will be set aside for ongoing upkeep of the former mill site and the implementation of a formal closure strategy. To ensure ample time for the completion of this deal and the ongoing closure processes, the court has extended the creditor protection period for Northern Pulp until April 30, 2026.