Canadian Manufacturing

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

May 29, 2017  by The Canadian Press

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.

Advertisment

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.


Print this page

Related Stories