British Columbia · CCAA

The purpose of this sixth report (the “Sixth Report”) is to provide this Honourable Court with information with respect to the following: a) an update on the Petitioners’ and the Monitor’s activities since the Fifth Report dated December 8, 2020; b) an update on the activities of the ELC and related communications with other stakeholders; c) an introduction to Northern Pulp’s vision of the future; d) an update with respect to the environmental assessment (“EA”) process and related strategies required to obtain approval from the Province to construct a replacement effluent treatment facility (“R-ETF”) and recommence Mill operations; e) an update with respect to the Petitioners’ current litigation against the Province; f) an update with respect to the contribution agreement dated March 17, 2020 (the “CA”) and the Monitor’s report on spending under the CA (the “Monitor’s Interim CA Report”); g) an update on notices of resiliating or disclaiming agreements (“NRDs”) sent by the Petitioners; h) an overview of the proposed second KERP (the “Second KERP”) and related increase in the KERP Charge requested by the Petitioners; i) an overview of the proposed Special Pension Payment and related amendments to the SIFF Term Sheet; j) the budget to actual cash flow analysis (the “Variance Analysis”) for the period December 1, 2020 through to March 31, 2021, including an update on the hibernation activities with respect to the Mill and the decommissioning of the aeration stabilization basin (the “ASB”) adjacent to the Boat Harbour (“BH”) lagoon, and an update on the woodlands operations and the implementation of a 4 widely accepted independent review of forestry practices in Nova Scotia prepared by Mr. William Lahey of the University of King’s College in Halifax (the “Lahey Report”); k) the updated cash flow projections for the Petitioners (the “Sixth Report Forecast”) for the period April 1, 2021 through October 31, 2021 (the “Sixth Report Forecast Period”); l) the updated interim financing budget analysis showing expected longer-term costs from April 1, 2021 through to June 30, 2022 (the “Sixth Report IFB”); m) the Petitioners’ proposed second draw on the IFF of $6,000,000 and amendment to the IFF Term Sheet; n) the proposed court ordered charges in these proceedings; o) professional fees and disbursements to date for the Monitor and its legal counsel; p) a request for an extension to the Stay Period; and q) the Monitor’s Recommendations

Court officer report · 20 April 2021