Meadow Lake Pulp sale to Sinar Mas approved;output going to APP China mills

摘要

Judicial approval was granted for the sale of Meadow Lake Pulp's 325,000 mtpy mill in Saskatchewan,Canada,to Asia Pulp and Paper's parent company Sinar Mas,a C37.5 million deal that makes Sinar Mas the third Asian-based company with assets in China to acquire a North American market pulp mill in two years.Local judge D.P.Ball,whose consent was widely expected and was a requirement after Meadow Lake filed for protection under Companies'Creditor Arrangement Act protection in early 2006,approved the deal late on Jan.12.(P&PW,Jan.15,p.9).The Court also extended CCAA protection to Jan.31 while officials finalized closing conditions.Under the deal,the province of Saskatchewan will retain a 20% interest in the new Canadian company that will own the pulp mill.