By Black Sheep
Bloomberg is reporting that Mercer International—the company behind Castlegar’s Celgar pulp mill—is preparing for a possible Chapter 11 bankruptcy filing.
How is this not the biggest conversation in Castlegar right now?
According to Bloomberg’s October 21 report, Mercer could seek court protection in the coming weeks, potentially in Texas. Its sources said no final decision had been made and plans could change. This is a reported possibility, not confirmation of a bankruptcy filing.
But the local stakes deserve serious attention.
Castlegar’s largest taxpayer
The City’s own April 20, 2026 council report identifies Mercer Celgar as Castlegar’s largest taxpayer, contributing approximately 30% of total municipal property tax revenues.
That same report records Celgar’s request to defer its 2026 property tax payment until the end of the year, citing financial pressures affecting the forestry sector.
Read that again: approximately 30% of municipal property tax revenue comes from one company.
That does not mean the City has suddenly lost that revenue. It means residents deserve a clear explanation of the City’s exposure and contingency planning.
Because this reaches beyond the mill gates. Workers, contractors, suppliers, local businesses and taxpayers all have reasons to pay attention.
The warning signs were already public
In its October 2 disclosure, Mercer said it had elected not to make an approximately US$25.8 million interest payment due October 1, instead using a contractual 30-day grace period. The company stated that using that period did not constitute an event of default under the indenture.
Mercer also disclosed advanced negotiations with major noteholders over a recapitalization and significant capital infusion. It said operations and payments to employees, contractors and suppliers were continuing in the ordinary course.
Those assurances matter. So does the financial pressure behind those negotiations.
There has been local reporting. Where is the sustained attention?
To be accurate, My Kootenay Now covered the potential bankruptcy on October 22. So it would be wrong to say nobody locally has reported it.
My question is why a development with consequences this significant does not seem to be generating a much larger public conversation.
A report about possible bankruptcy involving the parent company of our largest taxpayer deserves prominent follow-up, direct questions and clear local answers.
What does this mean for Castlegar?
Here are the questions I want answered:
- Mercer: What can you tell Celgar employees and the community about the mill’s position in any proposed restructuring?
- City Hall: What contingency planning exists for delayed or reduced payments from the City’s largest taxpayer?
- Mayor and council: What discussions have you had with Mercer, and what can you publicly disclose?
- Provincial representatives: What steps are you taking to understand the implications for workers and the regional economy?
I am not declaring that Celgar is closing. The reporting cited here does not establish that.
I am saying Castlegar deserves clear answers before people are left trying to piece together their community’s future from financial headlines.
When one company contributes roughly 30% of municipal property tax revenue, its financial stability is everybody’s business.
WTF, Castlegar. Let’s start asking the questions.
Sources
Bloomberg: Pulp Maker Mercer Is Weighing Possible Chapter 11 Bankruptcy
City of Castlegar: April 20, 2026 council agenda and tax-deferral report
Mercer’s October 2, 2026 disclosure, reproduced by StockTitan
My Kootenay Now: Mercer International may seek US bankruptcy protection
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