[The Telegram with files from The Canadian Press]
The Quebec Court of Appeal has rejected Newfoundland and Labrador's attempt to appeal an earlier decision to become a secured creditor of AbitibiBowater.
The province wanted to become a creditor to ensure the company pays for the environmental cleanup of sites it once owned in the province.
On Tuesday (May 18), Justice Jacques Chamberland dismissed the province's leave to appeal a ruling by Justice Clement Gascon released last month.
Chamberland stated in his decision that overturning the original ruling would give this province an "unfair advantage over the company's other creditors."
He also said appeal proceedings would "unduly hinder" AbitibiBowater's efforts to restructure and come out of creditor protection by September.
The province is studying the ruling and was not prepared to comment on Tuesday.
But Liberal Leader Yvonne Jones was voicing her concerns.
"We're very disappointed with the ruling simply because this can only result in a high bill for the taxpayers of the province," she told The Telegram. "But we're not necessarily surprised by the ruling."
Jones said the original ruling against the province suggested it didn't have a case, and now the people of the province could have to pay as much as $750 million to clean up the mess left behind by Abitibi.
"The government never got an opportunity here to present a case and get turned down," she said. "They've been told they don't have a case to present. They've been told that twice now."
Jones said the province is almost out of options but could ask for leave to be considered an unsecured creditor of the company.
"However, it's my understanding (the province) will have to go through that process with the same judge the premier ridiculed and raked over the coals in the House of Assembly (earlier this month)," she said.
But Jones said even if it does get on the creditors list, the province will be so far down, there won't be much money left.
She also said the province bungled the expropriation of Abitibi from day one.
"You've got to lay the blame where it belongs and that's squarely at the desk of the premier of this province," she said.
NDP Leader Lorraine Michael e-mailed The Telegram a statement after the news broke late Tuesday afternoon (May 18).
"This new ruling seems like another blow to the province. The government said it understood that there were going to be legal challenges if they expropriated Abitibi Bowater and we are now finding out how great those might be," she said.
