Port Alice pulp mill creditors unlikely to get paid, trustee says

Port Alice pulp mill creditors unlikely to get paid, trustee says

The bankrupt mill owner owes at least $272 million

PricewaterhouseCoopers (PWC), acting trustee for the closed Port Alice pulp mill Neucel Specialty Cellulose, says unsecured creditors should not expect to be paid.

Neucel was forced into bankruptcy this April after all but disappearing from Port Alice, leaving hazardous chemicals, millions in debt and hundreds of unemployed workers behind. Neucel vacated the mill in February 2019, and soon after the province had to step in to address hazardous waste which was at risk of leeching into the inlet.

The province submitted four bills for the clean-up to Neucel, which did not respond. Based on that, the court approved a bankrupcty order, assigning PWC as the bankruptcy trustee and receiver.

In a May 19 report, PWC outlined priority creditors, starting with the province which is owed $13.5 million, plus accruing interest. Second in line is Neucel’s parent company Fulida Holdings Canada, a member of Chinese-based Fulida Group, which claims $235 million.

The last secured creditor is Unifor Local 514, which is trying to collect $21 million in unpaid wages to former employees of the mill.

PWC wrote in its report that “there is no prospect of any recovery to the unsecured creditors.” This includes the municipality of Port Alice which entered a claim for $1.8 million in oustanding taxes.

For now, the massive, derelict mill site sits silent, guarded 24/7, paid for by the province.

READ MORE: Dormant Northern Vancouver Island pulp mill declares bankruptcy, owes $272 million

READ MORE: Neucel Specialty Cellulose lays off remaining workers, no written notice given

Do you have something to add to this story or something else we should report on? Email:
zoe.ducklow@blackpress.ca.


Like us on Facebook and follow us on Twitter.

Bankruptcies

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Staff Sgt. Darrell Underwood and Ian Gibbs, coordinator of volunteers for the Saanich Police Department, stand in front of the new Saanich Community Safety Office at Uptown Shopping Centre. (Devon Bidal/News Staff)
Saanich police call on volunteers for new community safety team

Community Safety Office to open spring 2021 at Uptown Shopping Centre

Sooke’s Amy McLaughlin holds Theodore, a bunny who will be going to a new owner in Nanaimo within the coming days if all goes will at an upcoming bunny play-date. (Aaron Guillen/News Staff)
Sooke woman looking to hop into bigger space for bunny business

Amy McLaughlin has rescued over 400 bunnies across the Island, mainland

Port Renfrew Fire Chief Dan Kuzman, left, and Juan de Fuca Electoral Area Director Mike Hicks, separated by two fishing rods for safe pandemic physical distancing, display the village’s new snowplowing unit. (Contributed)
Port Renfrew gets new snowplow

With equipment, CRD crew can clear roads following snowfall

(Black Press Media file photo)
Court-registered sex offender arrested for breach of parole in Langford

Cameron Ratelle returned to correctional facility after female youth approached at bus stop

(Black Press Media file photo)
Youth in police custody after kitchen knife call

A knife was recovered during the arrest, no injuries reported

Crews with Discovery Channel film as an Aggressive Towing driver moves a Grumman S2F Tracker aircraft around a 90-degree turn from its compound and onto the road on Saturday, Jan. 23, 2021. It was the “most difficult” part of the move for the airplane, one organizer said. (Jenna Hauck/ Chilliwack Progress)
VIDEO: Vintage military plane gets towed from Chilliwack to Greater Victoria

Grumman CP-121 Tracker’s eventual home the British Columbia Aviation Museum on Vancouver Island

Residents of the Cowichan Valley decorated more than 55 vehicles with anti-racist slogans for a car rally in support of Cowichan Tribes on Saturday, January 24. (Kevin Rothbauer/Citizen)
Dozens join anti-racism car rally and virtual panel in Cowichan Valley

Provincial ministry and BC Green caucus issue joint statement detailing concerns

Jesse Savidant, 31, is wanted by the RCMP after failing to appear in provincial court in Nanaimo in December. Police warn Savidant should be considered violent. (Photo Submitted)
Warrant out for man accused of stolen property offences across Vancouver Island

Jesse Savidant did not appear for court date in Nanaimo last month, say RCMP

Rolling seven-day average of cases by B.C. health authority to Jan. 21. Fraser Health in purple, Vancouver Coastal red, Interior Health orange, Northern Health green and Vancouver Island blue. (B.C. Centre for Disease Control)
2nd COVID vaccine doses on hold as B.C. delivery delayed again

New COVID-19 cases slowing in Fraser Health region

The Pacific Rim National Park Reserve is urging visitors to stay on designated trails after a hiker became injured in an unsanctioned area last week. (Westerly file photo)
Injured hiker rescued in Pacific Rim National Park Reserve

“Safety is everyone’s responsibility.”

Provincial health officer Dr. Bonnie Henry talk about the next steps in B.C.’s COVID-19 Immunization Plan during a press conference at Legislature in Victoria, B.C., on Friday, January 22, 2021. Two more cases of the COVID-19 strain first identified in South Africa have been diagnosed in British Columbia, bringing the total to three as of Jan. 16.THE CANADIAN PRESS/Chad Hipolito
B.C. now has three cases of South African COVID-19 variant, six of U.K. strain

Both variants are thought to spread faster than earlier strains

OPINION SIG
SOOKE HISTORY: Milne’s Landing CNR station

Elide Peers | Contributed Back in the 1920s, freight was often carried… Continue reading

Rodney and Ekaterina Baker in an undated photo from social media. The couple has been ticketed and charged under the Yukon’s <em>Civil Emergency Measures Act</em> for breaking isolation requirements in order to sneak into a vaccine clinic and receive Moderna vaccine doses in Beaver Creek. (Facebook/Submitted)
Great Canadian Gaming CEO resigns after being accused of sneaking into Yukon for vaccine

Rod Baker and Ekaterina Baker were charged with two CEMA violations each

Police discovered a makeshift nightclub in a Vancouver apartment on Jan. 23, 2021, and say it wasn’t the first time this month officers have been called to the unit over social gathering concerns. (Phil McLachlan - Capital News)
Doorman of makeshift ‘booze-can’ in Vancouver apartment fined; police look to court order

This marks the fourth complaint about social gatherings inside the apartment in January

Most Read