Northern Pulp cried poor while paying parent company nearly $60 million, Nova Scotia officials argue in court documents

By Aaron Beswick
The Chronicle Herald
July 28, 2020
Category: Business & Politics
Region: Canada, Canada East

The province has accused Northern Pulp of misappropriating taxpayer funds and misrepresenting its financial state to allow it to funnel more money back to its parent company.  The accusations are found in affidavits filed by high-level Nova Scotia government officials in the British Columbia Supreme Court in which they argue Northern Pulp shouldn’t be allowed to accept a $50-million loan from Paper Excellence Canada and related company Pacific Harbour North American Resources.    …According to Duff MacKay Montgomery, deputy minister at the Department of Labour and Advanced Education, Northern Pulp has soured the well with the province by playing loose with taxpayer funds. …Those negotiators saw that in 2018, when Northern Pulp had come to the province crying poor and seeking loan payment deferrals worth about $3 million, it had found $59.9 million to pay Paper Excellence Canada Holdings Corporation. [We respect the copyrights of the source publication – full access to this story may require a subscription]

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