'- Talstte Of previous: ‘deals made’ with the company ‘in AIO - The Terrace Standard, Wednesday, June 23, 2004 at lining up a NEW SKEENA Forest Products is forging ahead on dis- cussions with a potential main investor to have interim, financing, in place, by: early next month, paving. the ° way to a final deal-to re-open its: facilities... It'll be: back in'B.C, Supreme: Court July Sat which * time more. details of the. investnent. plan. for: a potential — $70 million’ infusion will be knowa:' ° ; This is the closest: indictition’ yet thal, New Skeéna is. on. the verge of: finding. money ' since it wen: into, Greditor, protection last year. was The July'S. return ‘date. was ‘set by B By ¢. ‘Supreme Court ° . Justice’:Donald: Bremmer. ata. hearing ‘June. ‘14. That. _ hearing date itéelf followed an-extension. granted. i in Aptil 7 a ‘at which time: New Skecna said’ it. had serious and inter- on _ ested investors. @°0 2°, eee “T don’ ft ‘want: to get i ‘inte ‘the’ “expectations, gamné, but : the discussions with the investor:is: strongly. ‘geared. to putting sufficient interim. financing, in ‘place.to. get into _ the woods ‘to build’ road and‘ commence ‘logging before’ the end of" July." New: Skeena president: ‘Dan, Menkez said: last week: : - "We. eed’ to: do “that: so. that “the: ‘season: is". “not. * missed, "he said. ; . The ‘company’ s "Prince: Rupert pulp: ‘ill: and mereice' sawmill: have: been- closed - ‘since. mid-2001, ‘putting ém- , ployees « out. of work and, depressing. the -Fegional: econ, OMy. . with a consolidated. net “worth i in excess “of $20 billion.” “The name. ‘of: the eompany’ was “excluded from: the ex- : hibit. which was a ‘June 13. letter. sent to New Skeena, oF _” “We confirm that, further to: ur. Jeter to: you dated’ April. 7, 2004,. we have undertaken’ substantial: due dili-’ gence investigations . ‘at: considerable time and. expense’ to us atid we remain-.very interésted. in. exploring a po- tential: investment in New Skeena, ” the letter-stated, UONS. ; Some of the i runiours, were “tote in. ‘New Skcena offi. ‘cials: polling: logging | contractors and: laid. off: employees contr "6 determine Who was availablé and what-was needed:to - “re-start. ‘operations. . Significant: numbers of. laid off: New ‘Skeena-: employees, particularly: skilled: workers, have ” The. Tuly. 5 court: hearing. formalized ‘New: ‘Skeena’ Ss : -; ‘pursuit of the mystery- investor; described by: itself. in’ a- court exhibit, as-a “Canadian private. investment vehicle... New Skeena is working © big investor “We expect that we wil be in-a position to: enter into - ‘a binding agreement with respect. to our investment. by me the, extension, date of July. 5, 2004,” the letter continuéd, . The mystery company’s interest.in‘New™ Skeena. and. “|: its due diligence..work had ‘sparked: local: rumours of:an’. imminent deal. and t re- 0 enin of the compan s: 0 era . Be Ps 8 aie y’ ee mvichunnstonedeyg 7 since: left the. area’ in pursuit ¢ of work. y investment and. to 0 provide: $15; million j in, n working, ca” : ‘pital. _ New, Skecna ‘has been ticking along ‘using | its: own . “money and. ‘investnients. ‘by. its -main creditors, ‘but: that -cash is: running :out. It means that interim: financing by the’ mystery investor prior.to.a final deal-is ¢rucial: no : The June :14-hearing also resulted ‘in the end’ of. a dual . "-track-in- which New Skeena sought’ out-inyestors: while. a court-appointed monitor: sought. out ‘companies. ready to ° liquidate: ils, assets Should an Investor’ or: investors not be . | found, Prospects oft new niioney. for New ‘Skeena have im-. “proved since the new year with a steady rise inthe: price Se of: pulp. The company. has‘also. managed - to négotiate la- 7 -bour contracts calling for. lower , “Wages and. reduced: -’ -*' benefits then-were Paid. ‘when it _was operating, ‘In return,” :: ~New Skeena. has put in. 1 place: a bonus. system ‘based. on . profitability. ie “ Even: though New. Skeena may. r ling up. 2 a-main.-in- D vestor, it-still has’ to make: arrangements with: ‘Creditors to. : _ pay: unpaid: bills, These creditors include northwestern. municipalities, one. of which i is ‘Terrace, which are e owed. - millions in: unpaid property taxes.: No more tax breaks for New Skeena, ‘says TERRACE MAYOR Jack Talstra says neither he nor his council are interested’in| cutting New. Skeena Forest Pro- 7 ducts “any kind of break on. its unpaid property taxes, Talstra made the comment last week -after‘the ¢om- ~~ ' pany, which is. under’ creditor. protection, ‘received ane "other court extension’ in order ‘to. solidify a deal. ‘itis _ working on ‘with’ a major, investor to ‘provide, the money i “to” re-open its Gperations, - a. SSE doubt:it: We ve. been. there and done that, said which it was {o’pay outstanding property taxes. : As of: July 2, New -Skeenawill.“owe. “the: ‘city’ $2,752,409 in: ‘unpaid taxes. stretching: ‘back’ three years, . The company ; ‘also owes, the city $576, 620..in taxes - under a. previous payment plan that Was never fully ex-,” city mayor |