North Cowichan to hear from Catalyst boss

February 22, 2012

While the municipality of North Cowichan keeps an eye on the status of their biggest tax payer, the Crofton Pulp and Paper Mill, the district council was scheduled to get an update Wednesday from mill boss, Catalyst Paper CEO and President Kevin Clarke.

The company is under court protection from its creditors while it figures out how to deal with its debt. North Cowichan Mayor Jon Lefebure said they understand the uncertainty of it.

“We know it doesn’t necessarily mean the end of the company and we are hoping they will carry on.”

There’s a good reason for trepidation. Some 25 per cent of North Cowichan's taxes come from the Crofton Pulp and Paper Mill and while under temporary court protection, Catalyst owes some $800 million in debt.

“You can easily see that we are very concerned, this is our major tax payer and being in creditor protection has to be an indication of a precarious position for them.”

Clarke was scheduled to talk with the district council Wednesday morning and meet with unionized employees and staff at the Crofton mill in the afternoon.