06 November 2008

Double Denouement

1.  A creditors' meeting today will determine if NLRC will finally fold, putting an end to the refinery project near Come By Chance.

Relations between NLRC and its largest unpaid creditor, though, have been strained.

BAE Newplan Group, a subsidiary of Montreal-based engineering giant SNC-Lavalin, has filed a statement of claim against NLRC in Newfoundland Supreme Court, alleging that NLRC had been deceptive while describing its financial health.

Until earlier this year, when financing for the project fell through, the NLRC proposal was moving ahead a steady pace. It had gained solid community backing, as well as crucial approval through the environmental assessment process.

That last paragraph could use the words "appeared to be" instead of "was".  Several crucial details weren't in the public domain until BAE-Newplan filed suit.

Has anyone determined if the three major European investors are still involved in the project or did they bail sometime in 2007 as some reported earlier?

2. AbitibiBowater posted a big third quarter loss, CBC News reported on Thursday.

The union at the company's operation in Grand Falls-Windsor has until Friday to decide on a restructuring proposal for the mill or face closure.