PricewaterhouseCoopers (PWC), the receiver in the C&C Wood Products Ltd. and Westside Logging Ltd. bankruptcy, is seeking approval from B.C. Supreme Court this week to accept an offer to sell to company which would see the facility reopened.
According to an update on PWC’s website, the matter will be heard in British Columbia Supreme Court Wednesday, July 29.
On July 20, 2020 PWC entered into two purchase agreements with Quesnel Investment Corporation.
The first purchase agreement is for the non-licence assets and the second purchase agreement is for licence assets of the companies, according to court documents filed by PWC.
Some of the terms and conditions of the sale include the remaining inventory at the Quesnel Facility, the property in Quesnel, plant and equipment at the Quesnel Facility and the mobile equipment owned by WSL and C&C.
Conditions of the Licence APA include that the court grant the approval on or before July 31, 2020 and provide written approval from the Minister of Forests, Lands, Natural Resource Operations, and Rural Development, or its authorized delegate, of the assignment of all of the licences, which C&C Wood Products depends on for its timber supply.
PWC noted the sale “may preserve jobs in Quesnel, B.C. thereby promoting the interests of the community.”
There were several parties interested in C&C Wood Products, with PWC receiving binding offers from four bidders as well as two further offers from liquidators.
If the court approves the sale transaction the non-licence asset purchase agreement is expected to close within five business days of court approval and the licence asset purchase agreement is expected to close by October 31, 2020.
C&C Wood Products and Westside Logging Ltd filed for bankruptcy June 2, 2020 and employed more than 100 staff at that time.