Great Northern Timber Incorporated et al., CCAA

Great Northern Timber Incorporated et al., Nova Scotia-based forestry companies, had their NOI proceedings continued under the CCAA on 21 February.

The companies operate as a vertically integrated forestry business to harvest, process, manufacture and sell woodchips and biomass for export around the world. The companies operate from two owned production facilities: the Sheet Harbour Chipping Facility and the Musquodoboit Pellet Mill Facility.

The group’s operations were materially affected by weak commodity pricing in 2023 and 2024, combined with a series of contract disputes with certain customers which adversely impacted cash flow and working capital availability.

The companies’ two primary senior secured lenders, CIBC and Roynat, are owed approximately $10 million and $2 million respectively.

The purpose of the CCAA filing is to allow the companies to finalize a transaction arising from a SISP conducted in the proposal proceedings.

EY is the monitor.

Counsel is Stewart McKelvey for the companies, Stikeman Elliott for the monitor, Cox & Palmer for CIBC, and BoyneClarke for Roynat.