AV Nackawic acquires St. Anne-Nackawic pulp mill

Date Closed: 11/09/2005

Value: Undisclosed

On November 9, 2005, AV Nackawic Inc. (AVN), a New Brunswick company controlled by the Aditya Birla Group of Mumbai, India, and Tembec Inc. of Montreal, completed the acquisition of the bankrupt St. Anne-Nackawic pulp mill from the court appointed receiver, PricewaterhouseCoopers Inc. The completion of this transaction was preceded by a hearing before the Court of Queen’s Bench at the instigation of the Province of New Brunswick as a security holder. The amount of the transaction is undisclosed.

Financing facilities were provided by a syndicate of lenders led by State Bank of India (Canada), which was represented by Stephen Redican and Shane Pearlman of BLG in Toronto.