CANADA (From news reports) -- The Nova Scotia government will bid on the assets of Northern Pulp, which include extensive timberlands.

Potential bidders had a deadline of Nov. 20 to declare their intentions. Government officials confirmed the plan, but provided no other details.

On Friday, an official clarified that the province's bid would only be for 162,000 hectares of timberlands and a nursery and seed orchard in Debert.

The province is not bidding on equipment related to the mill.

The Northern Pulp mill at Abercrombie Point in Pictou County ceased operations in January 2020 after the company failed to get environmental approval for a new effluent treatment facility.

The company subsequently filed for creditor protection and engaged in a protracted legal fight with the province over the premature end of its lease to use Boat Harbour as an effluent treatment facility.

The two sides eventually reached a settlement agreement that included an end to the legal sabre-rattling.

Auction to be held

In August, a British Columbia Supreme Court Justice approved an initial bid of $104 million for the company assets, which include about 162,000 hectares of timberland, and a nursery and seed orchard in Debert.

That initial bid from an Ontario-based company called Macer Forest Holdings Inc., would have stood up in the absence of any other parties declaring an interest by Thursday's deadline.

With the provincial government making it at least two parties in the process, Macer's bid will be the starting point for an auction to be held Nov. 27. Bids will be required to increase by increments of at least $200,000. If Macer does not win the auction, the company would receive compensation of up to $3.1 million.

The successful bidder will be finalized the following day and then have until Dec. 9 to reach an agreement.

Assuming that happens, the parties would be in B.C. court seeking an approval of the agreement by Dec. 19.