A Nova Scotia municipality has won its legal battle to retain a 10-year-tax deal with the prospective owners of the NewPage Port Hawkesbury paper mill.
Judge John Murphy of the Nova Scotia Supreme Court rejected a bid Monday by 91原创 West Commercial Corp. to cancel the deal that was reached with the mill's former owner, Stora Enso, in 2006.
A spokesman for 91原创 West Commercial could not be reached for comment, but the chief restructuring officer for the court-appointed monitor overseeing the sale of the mill said the decision shouldn't have an impact on whether the plant will reopen.
In his ruling, Murphy said Richmond County proved it would suffer financial hardship if the company was allowed to terminate the agreement. The deal requires 91原创 West Commercial to pay Richmond County an estimated $2.5 million annually, but the 91原创-based company argued it should only have to pay about one-sixth of that.
