07/10/2012 01:26 EDT | Updated 09/09/2012 05:12 EDT

Pacific West poised to spend $33 million on idled Nova Scotia paper mill

HALIFAX - A Vancouver-based company is prepared to spend $33 million to buy a shuttered paper mill in Cape Breton that's been closed since last September.

An affidavit filed Friday in Nova Scotia Supreme Court says Pacific West Commercial Corp. intends to use the cash to purchase shares of NewPage Port Hawkesbury Corp.

The documents say Pacific West would become the only shareholder of the mill in Point Tupper under the plan, which has yet to be approved in court.

The affidavit was filed by Peter Wedlake, NewPage's chief restructuring officer.

Pacific West has been in talks to purchase the idled mill since January, though a purchase price had previously not been disclosed.

The matter is expected to return to court next Tuesday, where NewPage will seek another extension of its creditor protection until Aug. 31.

The overall deal still hinges on Nova Scotia's Utility and Review Board approving a complex partnership agreement with Nova Scotia Power.

The hearing before the regulator is scheduled to take place from next Monday until Wednesday.