The Nova Scotia government has granted a five-week extension to Northern Pulp as the company works on plans to build a new paper mill on the province's southwestern shore four years after it was granted protection from creditors.

The government announced the extension late Monday, saying the company "has not reached the financial threshold" to support the proposed project in Liverpool.

Northern Pulp has been under creditor protection since June 2020 after it closed its kraft paper mill in Nova Sc…