Northern Pulp Nova Scotia Corporation launches a sale and investment solicitation process ("SISP")

VANCOUVER, BC, Aug. 29, 2025 /CNW/ - On June 29, 2020, 1057863 B.C. Ltd., Northern Resources Nova Scotia Corporation, Northern Pulp Nova Scotia Corporation, Northern Timber Nova Scotia Corporation, 3253527 Nova Scotia Limited, 3243722 Nova Scotia Limited, and Northern Pulp NS ULC (collectively, the "Petitioners") obtained an initial order (as amended and restated on August 6, 2020, the "Initial Order") under the Companies' Creditors Arrangement Act, R.S.C. 1985. c. C-36, as amended (the "CCAA") from the Supreme Court of British Columbia (the "Court"). Pursuant to the Initial Order, Ernst & Young Inc. was appointed as the monitor (in such capacity, the "Monitor") in the Petitioners' CCAA proceedings.

On August 21, 2025, the Court granted an order (the "SISP Approval Order") that, among other things:

1. approved this Sales and Investment Solicitation Process (the "SISP");
2. authorized the Monitor and the Petitioners to implement the SISP; and
3. approved and accepted, solely for the purposes of conducting the SISP, the Stalking Horse Subscription Agreement dated August 19, 2025 (the "Stalking Horse Bid") among Macer Forest Holdings Inc. (the "Stalking Horse Bidder"), as purchaser, and the Petitioners, as vendor.

Pursuant to the SISP Approval Order, the Petitioners intend to offer the forest lands in Central Nova Scotia ("Timberlands") and the nursery and tree improvement seed orchard located in East Mines, Nova Scotia ("Nursery") for sale pursuant to the terms of the SISP. Ernst & Young Orenda Corporate Finance Inc., and Ernst & Young Corporate Finance (Canada) Inc. ("EY") will be leading the sales process.

The purchase price of the Stalking Horse Bid is $104 million. The Stalking Horse Bid contains fees of up to $3.08 million that become payable when/if a bid exceeds the Stalking Horse Bid. Bid interval requirements are $0.25 million. Accordingly, purchasers' offers are expected to contain a purchase price exceeding $107.33 million.

The Timberland and Nursery assets include ~170,000 hectares of land in Central Nova Scotia, including:

• 155,000 forested hectares, with a ratio of 1.5x softwood to hardwood
• The Nursery having ~3.5M of current annual seedling production and a capacity of ~7M
• Various other revenue generating assets including gravel pits, camp leases, wind energy leases and communication tower leases

For greater clarity, the pulp mill owned by Northern Pulp Nova Scotia Corporation in Pictou County, Nova Scotia is specifically excluded from this SISP.

The SISP is a two-phased process with a Qualified Phase I Bid deadline of November 20, 2025. The Court approved SISP sets specific provisions (including timelines) for any interested party to participate. 

Copies of documents filed in the CCAA proceedings and the SISP may be obtained from the Monitor's website at: www.ey.com/ca/northernpulp

Link to the Twentieth Report of the Monitor: https://documentcentre.ey.com/api/Document/download?docId=42632&language=EN 

Those interested in participating in the SISP can contact EY to receive additional information:

Robert Withers*
Senior Vice President
Tel: [phone] | [email protected]

Alix Paris*
Vice President
Tel: [phone] | [email protected]

Alessandra Benazzi
Associate
Tel: [phone] | [email protected]

*Ernst & Young Corporate Finance (Canada) Inc. is a U.S. registered broker-dealer. Any inquiries by U.S. persons should be directed to Ernst & Young Corporate Finance (Canada) Inc. through Rob Withers and/or Alix Paris

SOURCE Ernst & Young (Monitor of Northern Pulp Nova Scotia Corporation)