[POINT TUPPER, NS] — NewPage Port Hawkesbury has received a $3.3-million HST refund so it wouldn’t run out of money before its idled paper mill is sold.
A spokesperson for court-appointed monitor Ernst & Young confirmed the payment, which was due by this week. In an earlier report, the monitor said it was concerned NewPage wouldn’t have enough cash to pay for its commitments if that account receivable was not collected.
The report also stated that if the company runs out of money before it is sold, the province could step in and provide debtor-in-possession financing to conclude the transaction.
NewPage is under creditor protection under the Companies’ Creditors Arrangement Act, with proceedings due to wrap up by Jan. 20.
According to the report, the company has projected it will have $1.1 million in cash remaining on Jan. 21, based on the assumption that HST refund was received.
When NewPage Port Hawkesbury filed for protection from its creditors in September, its Ohio-based parent company provided it with $25 million to fund the sales process and maintain the mill and its two paper machines in a hot idle.
On Friday, Ernst & Young revealed that four bids for the mill’s assets were received by the deadline. Two of the bidders would operate the mill, while two would sell off its assets.