A US $2.5-billion deal to sell the Stora Enso paper mills in Point Tupper, N.S., to a private equity firm has closed, and residents of the small Cape Breton town are nervously awaiting word on the fate of the plants.
Ohio-based NewPage Corp., a subsidiary of Cerberus Capital Management, announced Friday that it has completed its financing arrangement with Goldman Sachs.
The new organization will mean NewPage controls eight mills, including the operation in Nova Scotia.
However, NewPage is assuming $450 million in debt, and says it plans to seek cost savings of $265 million.
Port Hawkesbury Mayor Billy Joe MacLean says he's "scared to death" over the future of the newsprint and fine coated paper mills, and wants Premier Rodney MacDonald to fly to Ohio and argue the case for keeping the operations going.
The company hasn't indicated yet what its intentions are for its Canadian operations.
MORE NOVA SCOTIA HEADLINES »
- Tidal power announcement on the way
- The Nova Scotia government is expected to announce a multimillion-dollar investment in tidal power on Tuesday.
- Student who threatened school was bullied, court told
- A bullied teen who threatened students at a Cape Breton high school last year has received a conditional discharge.
- Lobby Ottawa for help for heritage homes, Halifax urged
- A heritage advocate is urging Halifax council to back his demands for new federal tax breaks to help property owners renovate their old buildings.
- Nurses' contract talks not stopping anti-strike bill: premier
- Premier Rodney MacDonald has vowed to push ahead with a bill to prevent strikes in the health-care sector even if nurses across Nova Scotia reach new deals.
- Minister takes shot at $1-drink specials
- Labour Minister Mark Parent is hoping a Halifax bar will voluntarily stop selling $1 drinks, though it's not breaking any rules.
Canada Features
Blog Watch
Most Blogged about CBC.ca Articles
Note: CBC does not endorse and is not responsible for the content of external sites - link will open in new window
