Thursday, July 22, 2010

Hopes dwindle over Eurocan employee buyout plan

“From my point of view, it’s pretty well over,” --  Randy Halyk, Kitimat Counil member and part of the Eurocan viability group explaining to the Kitimat Sentinel his thoughts on the local bid for ownership of the Eurocan mill.

The deadline came and went and with no non-refundable deposit provided to West Fraser Timber on July 15th, the possibilities of an employee led buyout of the closed mill seems to be getting slimmer.

Back on July 6, the Viability Group, CEP and BC Co-operative Association had  proposed to a community meeting that the mill be purchased by the local group and run a single line producing sack kraft.

At that time a trust account was developed, hoping at the time to attract local business interests in Kitimat into the investment pool, but not enough local interest came forward, reducing the chances that an outside investor may wish to partner up in a bid for the mill, which shut down in January putting over 500 employees out of work.

An email of mid July outlined some of the terms of that proposed investment structure, with shares pegged at five thousand dollars each, with community share holders required to purchase two shares, workers would have been required to hold five shares in the new venture.

In the end it seems that there was not enough interest in the plan to put forward the necessary deposit on July 15th.

The Northern Sentinel outlined much of the background behind the days leading up to the deadline of last Thursday,.

The Eurocan buyout deadline has also been featured on a number of other media outlets in Northern BC.

Opinion 250-- No Co-op Bid Received For Eurocan
CFTK TV 7-- Hopes fading in effort to save Eurocan mill

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