China is actively courting legal options on way to acquire a Northern Ontario Pulp and Paper mill, Terrace Bay Pulp Inc. which is essentially into bankruptcy and may be put on the auction block for sale to the highest bidder!
Why a foreign Government is interested in owning a Canadian company that has been forced into bankruptcy when it’s own country wouldn’t touch it with a ten foot pole makes one wonder if Canada is intentionally devaluing Canadian industry in order for foreign take-overs to prevail?
Why would Canada do this?
That’s the “elephant in the room” this decade!
Part of Canada’s re-training for out of work citizens should include a course in speaking Mandarin!
Brian Snyder/Reuters files Wood chips used to make paper pulp.
A Chinese company is making a legal play to acquire a struggling northern Ontario pulp mill, a rival bid it says will leave more money in the hands of Ontario taxpayers.
Terrace Bay Pulp Inc., which is in bankruptcy protection, is being sold to India’s Aditya Birla in a deal that will see the Ontario government forgive a loan of about $25-million made to the Canadian pulp producer a few years ago.
A court hearing to approve the transaction, arranged through bankruptcy trustee Ernst & Young Inc., got underway Monday afternoon. But China-based Tangshan Sanyou Group Xingda Chemical Co. Fiber Co. Ltd. is demanding an auction to consider its bid, one of a handful that missed the official bid deadline earlier this year.
“Tangshan believes that its offer to acquire the assets of Terrace Bay is far superior to the best offer produced by the court-ordered sales proocess,” Yu Hanjiang, vice general manager of Tangshan Sanyou Group, said in an affidavit filed in the Ontario Superior Court of Justice.
He said certain creditors of the Canadian pulp firm, including Birchwood Trading Inc., support Tangshan’s requests to consider its offer or hold an open auction for final bids.
A spokesperson for Ontario said the government is monitoring the court process involving the sale of Terrace Bay Pulp.