Judge Approves Process to Sell Off Northern Pulp Assets in Nova Scotia

A British Columbia Supreme Court justice has approved the process to sell off Northern Pulp’s timberlands, Crown land leases, and nursery in Nova Scotia, CBC reported (8-22-25).

Justice Shelley Fitzpatrick authorized a CA$104 million baseline bid by Macer Forest Holdings after a one-hour hearing on Thursday.

The offer, known as a stalking horse agreement, positions the Ontario-based company to acquire the assets from the shuttered Pictou County pulp mill unless other parties express interest. If competing bidders emerge before November 20, an auction will be held with Macer’s offer as the opening price. If Macer is unsuccessful at the auction, it will be entitled to compensation of up to $3.1 million.

Proceeds from the sale will go toward Northern Pulp’s debts, including money lent by parent company Paper Excellence during the creditor protection process, pension wind-up costs, and amounts owed to the Nova Scotia government for previous loans.

Although there is also supposed to be $15 million set aside to implement a closure plan for the former mill site at Abercrombie Point, court filings have indicated there may not be enough money left over after other debts are settled, potentially forcing Northern Pulp into bankruptcy. The stalking horse bid does not appear large enough to cover those costs, though an auction could increase available funds.