AV Nackawic Acquires St. Anne-Nackawic Pulp Mill

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.
AVN was represented by Patterson Palmer in New Brunswick with a team led by Peter Forestell with support from Raymond Glennie, Q.C., (real estate), John Laidlaw (financing), Raymond French, Q.C., (insolvency), Jamie Eddy (labour & pension) and assistance from Josh McElman, Mike Gillis, Brian Hunt, Dan Leger and Trisha Gallant.
The receiver and the Province of New Brunswick were represented by Walter Vail, Q.C., from the Cox Hanson O'Reilly Matheson in Fredericton with assistance from David Norman, Q.C., and Stephen Hill. John Logan of the Attorney General's office acted for the province on provincial financing facilities.

Tembec was represented by Claude Imbeau of Fraser Milner Casgrain LLP in Montreal. The Aditya Birla Group was represented by general counsel M.R. Prasanna of Mumbai assisted by associate counsel Sarita Joglekar.

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 Borden Ladner Gervais LLP in Toronto.

The trustee in bankruptcy was represented by Raymond Gorman, Q.C., of Gorman Nason in Saint John. The receiver appointed by the bankrupt's parent company was rep-resented by Leslie Smith, Q.C., of Allen Dixon Smith Townsend. Edward Sellers (insolvency), John MacDonald, Sonia Bjorkquist, Jeremy Dacks and McLean Wood (litigation), Evan Howard (pensions) and Jacqueline Code (research) of Osler, Hoskin & Harcourt LLP represented the secured creditor/parent company, St. Anne Industries Inc.