Mr. Brian Baarda reports
CATALYST PAPER AND PACIFICA DEEP SEA TERMINALS INC. UNABLE TO CLOSE AGREEMENT ON SALE OF ELK FALLS SITE
Catalyst Paper Corp. did not close the sale of its Elk Falls site in Campbell River to Pacifica Deep Sea
Terminals Inc., and the sale agreement has been
terminated. The sale of the 400-acre industrial site and adjacent
properties was initially expected to close on Sept. 5, 2012. A
non-refundable prepayment of a portion of the purchase price was
received, and the transaction timeline was extended multiple times up to
the ultimate deadline of Dec. 18, 2012.
"It's disappointing that this transaction with Pacifica could not be
completed even with the extended timeline. This is a fully serviced
property in an excellent location, and we remain confident that the
right fit between site and buyer will be found that will bring new jobs
and opportunities to Campbell River," said Kevin J. Clarke, Catalyst
president and chief executive officer. "In the meantime, site personnel
are maintaining safety, security and environmental requirements and
complying with all applicable legislation."
The former pulp and paper site was indefinitely curtailed in 2009 and
closed permanently in 2010. It has since been decommissioned with
removal of chemicals, process wastes and key papermaking equipment.
The landfills remain intact as does the waste water system, which
continues to operate in preparation for the site's redevelopment to
other industrial uses. The Elk Falls mill began operation in 1952 and,
at its peak, produced 784,000 tonnes of pulp, paper and kraft paper
We seek Safe Harbor.