A last minute lifeline has been handed to bankrupt New Skeena Forest Products by a British Columbia Supreme Court judge.
Receiver Ernst & Young had recommended New Skeena’s assets be acutioned to pay creditors after efforts to sell the firm’s lumber and pulp operations failed. But chief justice Donald Brenner adjourned the latest court hearing until December 1 after a new bidder surfaced.
In addition, another potential buyer who had previously made an offer for New Skeena has now signicantly improved its bid.
Ernst & Young has valued the company’s assets at C$17.5m, not including Crown timber licences. Its auction recommendation does not include the sawmill at Terrace, which could still be sold as a going concern.
New Skeena went into receivership for the third time in six years during 2003 when it failed to raise C$55m needed to complete restructuring and municipalities took action to recoup unpaid property taxes.
