LUMBER IS on the move again at Skeena Cellulose following a lifting of a
blockade by local unpaid logging contractors. They've eniisted the help of lag-
ging associations in the interior to increase the pressure on the TD bank to

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honour cheques written to them in August.

Loggers ratchet up
campaign against TD

MORE THAN 1,000 contractors and
others could be on the verge of economic
war with the TD bank if it doesn’t honour
cheques issued to those who work for
Skeena Cellulose.

“Your bank’s refusal to honour them
are having a devastating effect on the re-
gional economy, and may force several of
these businesses into bankruptcy,” said a
Sept. 27 letter sent to the TD from three
logging associations.

Northwestern contractors are owed an
estimated $2.5 million after the TD fraze
Skeena Cellulose’s bank accounts in late
August and early September.

That happened despite receiving assur-
ances they would be paid under a line of
credit that would apply up to the end of
August, affected contractors say.

The associations involved are the
Northwest Loggers Association in this re-
gion and the Central Interior Logging As-
sociation and the Inierior Logging Asso-
ciation further inland.

They particularly want the bank to go
along with the provincial government and
ask the supreme court fo release monies

for payment. The province is willing to
ask the court to pay the contractors, but
the bank has refused.

Court approval is needed because the
company, at least until Oct. 5, is opera-
ting under the protection of the Compa-
nies’ Creditors Arrangement Act (CCAA)
which prevents any moves which could
end Skeena Cellulose up in bankruptcy.

The CCAA also sets out who can get
paid and for what amounts.

Contractors have already registered
two internet domain names,
“shameontdbank.com” and
“tdbankrobsloggers.ca” as part of what
could be an escalation of public aware-
ness of the issue.

And Ken Houlden of the Northwest
Loggers Association said contractors and
their employees could be urged to pull
their accounts from the TD,

“I know that would have an effect on
the TD’s business,” he said.

The best solution would be for the pro-
vince to pay the contractors in recogni-
tion that it is a 72 per cent owner of
Skeena Cellulose, Houlden added.

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