Quote:
Originally Posted by cal_guy
The Supreme Court is hearing the appeal.
http://ca.news.yahoo.com/s/capress/1...abitibibowater
The main reason for the expropriating was to reclaim the hydroelectric and timber rights that were given to a predecessor of AbitibiBowater in exchange for building and operating an pulp mill. |
Also if it went into bankrupcy protection the courts would have decided who got the timber and hydro electric rights to pretty much the entire province. It was too important to the people of NL to let a bankrupcy judge and the corrupt bankrupcy trustees work out.. The gov only had hours to expropriate that... Abitibi was seeking creditor protection and was planning on using the hydro and timber rights sell off as a key part of their overall restructuring...
It did cost the country 137 million settlement from the federal government based on the whole way provincial and federal resources work under nafta.... but in the end it'll be a net gain for the country, just take a little bit of time..