Former Repap Bosses Surface by JEFF NAGEL Extension Was Needed Because the Creditor Protection Under $620 Million Ority Owner at 28 Per Cent
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Ruined roads Rainsoaked Don't tease North Terrace residents Waterfall trail builders Pint sized basketball say they could have pre- get drenched at the players here to entertain dicted an accident there Exstew River and send a last week\NEWS A13 \COMMUNITY B5 messagekSPORTS B6 ;o ,;o ,;o $1.00 PLUS 7¢ GST %0 ($1.10 plus 8¢ GST outside of the Terrace area) • ' 03 ii ~-'- .OO ,|P- TANDARD"'Tevr~e i~ "I~.G.'~ "~oo~ T:ore.~tr'y Cctpit~(" Former Repap bosses surface By JEFF NAGEL extension was needed because the creditor protection under $620 million ority owner at 28 per cent. fought the The province effectively becomes A NEW bidder for Skeena Cellulose Montreal group was set back in its ef- in debt and triggered the past four extension application in court Friday, the direct holders of those loans now. includes former Repap executives who forts to arrange financing for a Skeena years of chaos. instead arguing the company should be "We are paying another $25 million used to run the company. Cellulose purchase because of the ter- A third offer to buy Skeena Cellu- declared bankrupt. this week." he said. "These are all be- The entry of a Montreal-based con- rorist attacks of Sept. 1 I. lose, from the company's top man- The province initially sought and c.'mse of the commitments the NDP sortium of forest executives into dis- The group has financing meetings agers, was taken off the table last obtained protection from SCI's credi- placed on the taxpayers of British Co- cussions to buy SCI was a key reason in New York this week, Thorpe said, week, Thorpe said. tors Sept. 5 after the TD stopped hon- lumbia." a B.C. Supreme Court judge decided and more time is needed to allow that "My understanding is the manage- ouring cheques issued by the company Skeena Cellulose still owes the TD Friday to extend creditor protection for to happen and to examine the offers. ment group has withdrawn their offer and demanded payment of all out- bank $94.2 million that is not guaran- another 30 days. The province also needed more to purchase the company," he said. standing loans. teed. Enterprise minister Rick Thorpe time to negotiate with the new group Thorpe said the management group Meanwhile documents filed in court The rest of Skeena Cellulose's $410 • 'C • • confirmed the bidding group includes and to continue tail,s w~th Swiss-based offer was made in concert with Texas- last week reveal the province paid million in debt will be held by the pro- former officials of Repap, which Mercer International, he said. based Enron Corp., which was close to $124 million to the TD Bank on Sept. vince. owned Skeena Cellulose up to 1997. Repap Enterprises was the Mon- a deal with the NDP to buy Skeena 19. Thorpe said the extension of court- "I understand there are some former treal-based parent company of Skeena Cellulose two years ago. That's money that the TD loaned administered creditor protection will Repap people," Thorpe told The Stan- Cellulose, then called Repap B.C., up That offer was being championed Skeena Cellulose that was guaranteed allow more time to try to broker a sale. dard. "I've also been advised there are until early 1997. by North Coast MLA Bill Belsey, by the province. "Our people continue to work a couple of others, former people from In a bid to secure a merger partner, himself a former Skeena Cellulose The bank has called those loans around the clock to try to pull some- major international forest companies." Ri~pap severed its ties with the B.C. manager. and the province had to back them, thing together," he said. The province argued in court the subsidiary. That allowed it to sink into Lawyers for the TD bank, the rain- Thorpe said. Cont'd Page A16 Sawmill to close I WEST FRASER wilt shut its Terrace sawmill down for two weeks in the last half of October. But general manager Lou Poulin said the mill will t add a second shift to its planer, which will continue to operate Oct. 15-26 while the sawmill is down. As a result, he said, layoffs shouldn't be more than about a dozen workers. West Fraser blamed a growing global recession, exacerbated by the terror attacks on the U.S. last month, for worsening the slide of lumber prices. B.C. producers are also being hard hit by a 19 per cent tariff placed on exports to the U.S. And Poulin noted the traditional winter slow period for lumber sales is approaching. "We can't sell any lumber," he said. "Nobody's buying." Trustees eye reading boost By JENNIFER LANG PRIMARY SCHOOL students could be spending 40 per cent of their day learning how to read if a Coast Moun- tains School District proposal goes ahead• But some trustees fear the plan to ensure students in Kindergarten to Grade 3 spend at least 40 per cent of their daily instructional time in literacy activities could be delayed by giving teachers more time to consider the proposal. A Coast Mountains School District plan to improve literacy that's supposed to go into effect this year, with full implementation by 2002-2003. Last month the school board referred the plan to the district's education committee for review. Under educa- tion ministry guidelines, primary school teachers deter- I It's a pig's life mine how much time they devote to required subjects. THESE TWO Yorkshire pigs enjoy a long, lazy meal as they Joe Huber of North Terrace. The Huber property is also home But several trustees became alarmed when Terrace bask in the mid-day sun early last week. They are just two of to dogs, ducks and chickens that keep the pigs company. trustee Marj Brown told them the district's education several enormous pigs (and some smaller piglets) owned by SARAH A• ZIMMERMANPHOTO. committee wants to take an indefinite amount of time to consult with teachers about the plan. "They'd like us to back off as a board," Brown said. Last December, Kitimat trustee Peter King said he believes the school district is failing a large segment of its students. King now worries trustees will be penalized Masons, natives lose out by the education ministry if the plan doesn't go ahead soon. That's because school districts have been told they'll have to sign accountability contracts holding them to their priorities. on new city taxation plan Stewart trustee Les Deacon-Rogers said the board should wait to see what deputy education minister By JEFF NAGEL bill of just under exemptions as money the city isn't now re- Emery Dosdall has to say about the contracts, first. LOCAL MASONS will have to cough up $3,000 next year. ceiving. Dosdall is meeting with superintendent Randy Small- $2,800 in property taxes this year after city Degerness also ar- "We're not spending tax money," he said. brugge and some board members Oct. 18 in Terrace. council decided to yank the Masonic Lodge's gued that the Child "We're just not collecting it." Deacon-Rogers said if it turns out improving literacy tax exemption. Development Centre City chief administrative officer Ron Peele would be part of this contract, then the board can "give The Terrace Masonic Association was (CDC) should have its disputed that logic. marching orders to the district". deemed to merit no tax exemption because it tax exemption cut to "When you say it's not on the back of the Improving literacy across school district 82 became a has restrictions on who can be a member. 50 per cent, which taxpayers, it is," Peele said. "If we do exempt top priority last year, after a provincial government as- That's in line with a new policy approved would have cost the somebody, it comes from someone else." sessment of literacy, numeraey and writing skills in last Friday following a wide-ranging city re- centre $9,000. Councillor Marylin Davies said she couldn't Grades 4, 7 and 10. The Foundation Skills Assessment view of discretionary tax exemptions. Centre financial justify cutting the CDC's exemption if the cur- 2000 showed one-third of students here are failing to To be eligible, the policy requires a non- statements show it has ling club - which she said is strictly for adult meet education ministry standards. profit organization have open membership, be a $225,000 reserve recreation - gets a full exemption. Hazelton trustee Peter Weeber told the board Oct. 3 accessible to the public, and be dedicated to fund that has been David Hull The city reviewed its discretionary property he's shocked by the number of students who make it the fitness, health, recreational or cultural growing - something tax exemptions for 10 organizations that would through Grade 11 and 12 who are "functionally illiter- needs of the city. city administrators say raises questions about pay a total $62,000 if not exempt. ate". ,'There's a marked deterioration in the number of Unlike the Masons, the Kermode Friendship their need for a city tax break. All the rest - the chamber of commerce and people who have attended high school and cannot read Centre - which also restricts its membership - But councillors rejected the recommenda- tourist information centre, the hospital auxili- or write," he said. will see its exemption reduced to 50 per cent tion and agreed to continue the Child Deve- iary thrift store, the Kin Hut, a bus garage at There's growing evidence the more time young child- rather than eliminated entirely.