Paper Excellence proposes to fund remaining severance, other payments to Northern Pulp workforce

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Paper Excellence says it wishes to loan money to
Northern Pulp Nova Scotia (Northern Pulp) so that all of the remaining severance, salary continuation and retiree benefit payments can be made to Northern Pulp’s workforce affected by the mill’s hibernation.

The ability of Northern Pulp to borrow the money from Paper Excellence and to make the payments is subject to Northern Pulp applying for and the British Columbia Supreme Court approving the loan and proposed payments.

“Paper Excellence’s priority is to support Northern Pulp’s dedicated workforce while we engage with stakeholders and explore alternatives for restarting the mill,” said Graham Kissack, VP, EHS and Communications, Paper Excellence. “We believe the severance, salary continuation and retiree benefits must continue. Former employees and retirees have been through a very challenging year with the hibernation of the mill and then COVID-19. Covering the remaining severance, salary continuation and
retiree benefits is the right thing to do.”

During the remainder of 2020, Northern Pulp will work with the court appointed monitor, Ernst & Young Inc., to preserve value of its assets, to shut down the Boat Harbour effluent treatment facility (ETF) and
complete the hibernation of the mill in a safe and environmentally responsible manner, engage with stakeholders and explore alternatives for restarting the mill, and take appropriate steps to obtain environmental approval for the construction of a replacement ETF.

Paper Excellence remains committed to resuming mill operations in Nova Scotia and believes that a modern mill and healthy environment can co-exist in Pictou County, just like it does in 89 other communities with pulp and paper mills across Canada.