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St Marys Paper forced into receivership today

Friday, December 30, 2011   by: Carol Martin

This morning at 9 a.m. St Marys Paper Corp. was forced into receivership.
 
Management has confirmed this but is not yet able to provide any details about why it happened, the company's next steps or the impact this will have on its employees.
 
The troubled mill has remained closed since April of this year and produced paper only sporadically for most of the year.
 
A letter from St Marys Paper Chief Executive Officer Dennis Bunnell to mill employees in July indicated the April shut down was necessary to repair paper machine #5, the only working paper machine in the mill.
 
The letter also said it was necessary to recapitalize the mill and find a partner to fund construction of a proposed co-generation power plant on site.
 
In that letter, Bunnell said that the last shut down in April was expected to last until July but that circumstance continued to prevent the mill from making paper again.
 
There has been little activity seen on the property since then.
 
Comments
18
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jeffster 12/30/2011 7:07:02 PM Report

yet another amazing waste of government money trying to revitalize an industry that has closed on 3 seperate occasions. seems to me that Dennis Bunnell is mostly concerned about notoriaty and his keen ability to magical revive any failed business. Thanks for coming out Dennis...but you've definitely dropped the ball on this one. Time to pack up your toys and head back to the good ol' u.s.a.
rcamp211 12/30/2011 7:27:14 PM Report

GOING,GOING,GONE...MAYBE A GOOD TIME FOR ESSAR TO STEP IN AND MAKE POWER TO RUN THE PLANT?
TankGirl 12/30/2011 8:26:49 PM Report

Or stop chopping down trees and realize that hemp is a better route.
bruno-b 12/30/2011 8:33:44 PM Report

I think it is time the government butted out and let this pink elephant die forever. The goverment looked away when Ron Stern took 17 million from the pension fund and left all the employees to absorb a 25% LOSS IN THEIR PENSIONS AND THAT IS FOR LIFE!! MAYBE THE GOVERNMENT SHOULD LOOK AT THE BIG PICTURE BEFORE HANDING OUT ANY MORE MONEY!!This means you David O.We as former employees now have to suffer the rest of our lives ,because of our goverments inability to make former owners responsible for their actions,At this point any goverment aid will only line the pockets of people with FALSE intentions, Let it go for scrap so normal people can move on and find stability in a real future,David O. you should know better than to get your hands dirty again!!!!
bruno-b 12/30/2011 9:42:32 PM Report

Employees who were falsely led to believe that Dennis Bunnel had a true intention to move forward with St Marys paper need to know his only intension was to line his pockets with government "CO gen" money and then run back to the U.S. Look down when you cross the bridge and you will see thousands of cords of wasted wood that was not PAID for poor loggers left holding the bag!!!! It is time for MR. Bonnell to leave PT. Louise and go back to the US. P.S. take the other idiot with you Michael Ignidiot!!!
bruno-b 12/30/2011 9:50:47 PM Report

Before any money is put toward this dreadfull act gone wrong a full forensic order for the past 10 years should be undertaken if this goverment has any BALLS!!! In the past two years no suppliers have been paid, they have been scammed again, Shame on our goverment and you David O. You will all be exposed!!!!
bruno-b 12/30/2011 10:11:19 PM Report

Most people dont realize that in the early 2000 Ron Stern and Belgravia Investments falsely inflated the shares of St Marys paper for his own gain, This was a crime the same as Enron and other scams such as Bre X. Ron should be in JAIL beside Conrad Black and Bernie Madhof, But our goverment cant seem to see the real picture or they choose not too .IT IS A SAD DAY FOR THE WORKING CLASS OF THIS COUNTRY!!!! P.S. I hope you are happy Ron!!!
rcamp211 12/30/2011 10:17:36 PM Report

TankGirl let quess you live in a plastic house and wipe your bum with hemp?
Sam C 12/30/2011 10:54:34 PM Report

Perhaps before any attempt to resurrect the paper mill is made someone should determine whether there is a need for its product.

Closing the mill permanently would be a tremendous loss to the community, however the repeated attempts to restart it only to close again is even worse. If it closes, at least the employees know where they stand.

It seems to me that re-starting the mill will be doomed to failure if there is no market for its product.
everson 12/31/2011 8:59:20 AM Report

I saw this coming many years ago. NEXT!
hairry 12/31/2011 10:31:46 AM Report

perhaps now someone will step forward with the true intention of producing a quality product for the marketplace which we all know the mill is capable of doing, instead of lining there greedy dirty bottomless pockets with money. Put the workers and the community first for a change
daddy frank 12/31/2011 11:21:35 AM Report

this is a scam. I wonder how much money the owners lost? probally not one cent. the took the tax payers $20 odd million dollars and declared bankruptcy. THANK YOU MR. O NEXT TIME USE YOUR OWN MONEY.
a police investigation should take place and have (thieves)owners arrested if it is found they took all their money out and stung the employees and suppliers. did MR.O get any security from the owners? not likely. We just keep voting him and his cronies in what a mistake
daddy frank
Christine_C_S 12/31/2011 12:20:49 PM Report

Shame on corporate management for letting the employees hang on to hope of a recovery while not giving any information or details of future plans. Also shame on the government for not looking out for the tax payers money invested in SSM paper and not holding the company responsible for paying back all the monies owing to the employees. Employees will probably lose in the end which is become a norm. So sad!
bruno-b 12/31/2011 1:25:35 PM Report

There are 400+ employees that are affected,including people that were on pension ten or more years ago that are suffering from this disaster . As a previous employee and member of the CEP I say look back into the past ,the CEP does not care and will not do anything to help .Get your heads out of the sand and post a comment that everyone can see let the public know the whole story!!
everson 12/31/2011 1:29:38 PM Report

CEP does care, it is management that doesn't
cjborg 12/31/2011 3:43:01 PM Report

This certainly seems like a "no win" situation for David O.

The Prov. Gov. should at least be givin credit for "trying" to help ... Millions of $ for operations on two different occassions in recent years plus almost $200 million promised as incentive to get their Co-Gen plant going.

If any more money is given to mismanage a bad situation to make it even worse then I would agree David O. deserves to get the "boot" next election. (I personally don't think this will happen... David O. has proven that he is a hard worker, honest, smart and gets the Soo more than it's fair share of gov. money.)

For the sake of the employees, past and present I can only hope that, if possible, they can get fair compensation for their many years of dedication and past service.
zmann 1/1/2012 12:46:38 PM Report

I'm not impressed in the way that St. Marys has conducted themselves in regards to the employees. The last time the mill was down in March 2010,most of the tradesmen found and secured other employment but knew that if the mill was to ever reopen we would go back home [mill]. We had that chance in Nov.2010 when we were all promised [SECURED EMPLOYMENT] so most of us tradesmen went back to the mill only to have the wool pulled over our heads in beleiving that we would be set up.[WRONG],We were screwed out of full time work with another employer only 6 months after reopening,SHAME ON YOU GUYS!!!! Some of us now are forced to find work out of the province in our respective trades. THANKS FOR SCREWING WITH SO MANY LIVES WITH ALL YOUR FALSE PROMISES,SECRECY,AND HOPE. BY THE WAY,HOPE DOES'NT FLOAT!!!!
nick02 1/3/2012 1:01:57 AM Report

absolutaly brutal! if the major shareholders weren't so desperate for money because of there other failed buisness ventures, this might not be happening! look into it if you are interested!!!
Comments
18
Note: Comments that appear on the site are not the opinion of SooToday.com. If you see an abusive post, please click the link beside the post to report it.
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