AS - The Terrace Standard, Wednesday, April 16, 1997 Repap losses continue THERE’s no clear indica- tion yet whether Repap B.C. is financially viable. But the two banks that now own the company are expected lo make-a decision on whelher they can justify continuing operations ° next month. The report of © court appointed monitor. David Bowra, of Coopers and Lybrand, says Repap B.C. continues to lose money. — Losses’ for. the first two months of this year —- prior to the move to seek pro- tection from its creditors — totalled $20 million. That means the red ink is piling about as fast as ‘in 1996, when Repap B.C. lost $126 million before taxes. If the TD and Royal Banks decide to. continue operations, they'll be facing other costs beyond the con- tinuing operating losses. The report says ‘‘absolute minimum?” capital expendi- tures of $34 million are re- quired to continue opera- tions. That includes $15 million for the pulp mill and $19 million for the sawmills and ” Jogging road construction, The report says arrange- ments for that $34 million is ‘not yet established.’” Aliso of concern is that the company docs not have much room to manoeuvre. It will have used $97 million of its $99.8 million operat- Top Creditors of Repap B.C. Province of B.C. — $9.580 million City of Prince Rupert — $7,332 million Canadian National Railway — $6.753 million CXY Chemicals Canada Ltd. — $6.716 million Plateau Forest Products — $3.423 million Interior Power — $3.662 million LI Adams Contractors — $2.841 million - Albchem Industries Ltd, — $2.585 million Sterling Pulp Chemicals — $1.773 million _Kitwanga Lumber — $1,738 million Slender Lake Ventures Ltd. — $1.385 million - K’Shian Construction Ltd, —~$1.252 million Don Hull & Sons Contracting — $1.011 million Malliott & Son Logging Ltd. — $974,908 — ABB Turbine Systems Inc, — $886,109 Kuldo River Logging — $873,516 Pacific Northern Gas — $833,306 Canadian Stevedoring — $808,682 Elsworth Bros. Logging — $792,363 Swan Lake — $791,039 Finning Ltd. — $789,469 Main Logging Ltd. — $710,398 Larry Wookey Enterprises — $692,000 District of Port Edward — $634,067 Dupont Canada Inc. — $575,926 Cedar River Timber — $574,465 . Marsulex Inc. — $569,309 Kispiox Band Council — $567,501 Northwood Pulp and Timber Ltd. — $519,308 Long’s Logging Inc. — $512,064 Canadian Liquid Air Lid. — $490,224 .* ing line of credit by May 23. Repap B.C.’s $464 million debt to the banks is secured, while unsecured liabilities total $147 million, about half of which is owed to northwest ‘contractors and. suppliers. On the other side of the ledger, the book value of the company’s assets are estimated at $756 million. Container refund program expands A RECYCLING PRO- GRAM expansion plan an- nounced last week by the provincial government should help reduce the amount of waste going into ‘area landfills. ‘ Starting next year, the deposit-refund system cur- ‘rently * used ‘for beer, cider, ‘coolers and most pop cans -and botiles will be expanded ‘to include all beverage con- ‘tainers. ’ That means all bottled -water, ice tea, wine, liquor, ‘fruit and vegetable drinks ‘sold will have a refundable deposit attached to the ‘price-tag. The only beverage containers uot included un- der the expanded system are milk and milk substitutes. All those bottles heading back for recycling means they will not end up in area dumps. Right now, the en- vironment ministry ‘estimates some 80 per cent ‘of containers not under the ‘deposit system end up as lit- -ter or garbage. One person who is certain- ‘ly aware of just how much garbage that amounts to is ‘regional district manager of .works and services Roger .Tooms. ’ “[t?s about time,’? he says of the expanded deposit sys- _tem. “This is something the ‘regional district board has been requesling for a long time.”’ Tooms says the deposit system won't stop all the bottles from going to the dump, but it will certainly help. "Tt will definitely assist us in reducing the volumes going into our landfills,’’ he says. “Especially with wine and liquor bottles — they are very heavy.”’ Tooms also says that this is the kind of initiative the . government should have taken before regions started Making their own plans for _ Injuries : Stop Here. Adjust Your Head Rest and Buckle Up. managing solid waste. The new deposit legisla- tion will also phase out the current requirement for retailers to take back bottles, and that means more busi- ness for collection depots, “It’s good for everyone,” says Ken Senger of the Ter- race Boitle Depot. “Tt’s good for our business, but it will also help stop people from littering.” Senger says much of the garbage found on the streets consists of drink botiles that don’t have deposits. ‘You go out on the road right now and you find plastic drink botiles all over the place,” he says. ‘‘If there’s no deposit on them, peaple just toss them away, T's sad.”” Senger also says the legis- lation is long overdue. “Places like Alberta have April 19/97 done this for years,” he says. “B.C, always seems to be behind.”’ | The environment ministry has also announced new regulations for the collec- tion and disposal of hazard- ous household wastes like paint thinner, gasoline, lac- quers, turpentine and household pesticides. Manufacturers of these products are now required to open collection depots by December 1998 where con- sumers cam return unused hazardous wastes. The mizisiry says the goal is to prevent the materials from ending up in area land- fills or being poured down the drain. *Tt’s nice to see the pro- vince implementing these measures,” says Roger Tooms. “But they’re long overdue, ”’ Soturday Thursday Tuesday Thursday Saturday Thursday Thursday Saturday Tuesday Thursday =|Overwartea ovn Lood peopie. aad a ae If the banks decide to in- vest more and take further fosses to get a shot at their invesiment, the restructure process will continue. Cost ' savings will be identified and all creditors will be asked fo vote on a package of changes. Tf the banks cut their losses now, bankruptcy will result, and the assets will be sold off to pay off the ~ secured » bank debt.- ‘That would mean little if any- thing for the many suppliers and = contractors owed money that was frozen last month. The report shows how Repap B.C.’s bank debt grew from $99 million in 1986 to $481 million last year. The company paid no dividends over the last five years, but Repap Enterprises has extracted a management fee and sales commission averaging about $16 million a year Repap BC. and = sub- sidiaries Buffalo Head and Orenda Logging owe the province a total of $13.5 million in stumpage, the Tepori says. [t also says the ministry of forests is consid- ering increasing the amount of stumpage the company can defer from $10 million to $14 million, rae er Pay only the low $12 weekly fee. Knox United Church 4907 Lazelle Ave., Terrace Tuesday 7:00 p.m. Offer valid for a limited time only. GST not included. Cannotbe combined with any ather offer and is not available for “At Work” or Community Meetings. As people vary so do results. © 1997 Weight Watchers International Inc,, owner of the Registered Trademark, all rights reserved. “YES’ AGAIN! DECEIT. toss cushions, at similar savings. 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