Four Buchanan Forest Products mills in northwestern Ontario have been placed in receivership or with a bankruptcy trustee.
The action impacts 750 workers at Great West Timber, Buchanan Northern Hardwoods, Northern Sawmills and Atikokan Forest Products.
Buchanan Forest Products announced Jan. 13 that a commercial court in Toronto had appointed a receiver for the companies.
In company release, they blamed ongoing instability in the U.S. housing market that's lasted three years.
“We hope that a buyer will emerge who will operate the mills in the future.”
Because of rules governing these legal proceedings, “we are not in a position to make further comments on the specifics of various claims or cases.”
Terrace Pulp, which reopened for production last year, is not impacted by the proceedings.
Thunder Bay-Superior North MP Bruce Hyer expressed disappointment in the turn of events and that former mill workers are reportedly owed more than $9 million in unpaid severance and termination pay.
Hyer said his office is open to help workers access federal programs to recover unpaid wages, vacation, severance and termination pay.
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