N.L. government reaches pension deal with Corner Brook Pulp and Paper
The deal is the latest arrangement with the province to keep operations at the mill going
CORNER BROOK, N.L.—The Newfoundland and Labrador government has reached a deal with Corner Brook Pulp and Paper over the company’s pension plan.
Provincial officials met with the company May 28 and says it will guarantee a loan Corner Brook Pulp and Paper will get from a bank.
In return, it will take security interests in the company’s power assets at Deer Lake and Watson’s Brook.
The deal is the latest arrangement with the province to keep things going at the mill.
In 2014, Corner Brook Pulp and Paper borrowed $110 million from the province.
Service N.L. Minister Perry Trimper says if the company shuts down, the government can take the assets around the power generation and use them to pay the underfunded pension plans.