|
|
|
Pope & Talbot’s bankruptcy protection extended |
|
|
|
Written by Citizen Staff
|
|
Wednesday, 07 May 2008 |
THE CANADIAN PRESS
VANCOUVER - Bankrupt forestry company Pope & Talbot Inc. had its court protection from creditors extended until Monday, while it works out details to put three of its unsold mills into the hands of a receiver.
Chief Justice Donald Brenner of the Supreme Court of B.C. extended the creditor protection Wednesday as lawyers hammered out costs to close three mills in British Columbia and Oregon that employ about 1,000 people.
A deal to sell the mills in Nanaimo and Mackenzie, B.C as well as Halsey, south of Portland, Ore. fell through last week.
Pope & Talbot, unable to get money to keep the mills operating, sought court protection to help fund the wind down of the operations, which began earlier this week.
Sean Dunphy, a lawyer representing Pope & Talbot in its restructuring, said although the hope was to sell the mills together as they were operating, which would likely have fetched a higher prices, the extension will ensure their “safe and orderly” closure.
A receiver will be appointed later this week to workout details of how the mills can be sold in the coming months.
Representatives of monitor PricewaterhouseCoopers said Wednesday there has been interest in the two B.C. mills, but no formal bids. A bidder has come forward for the Oregon mill, court heard Wednesday.
Together, the Harmac mill in Nanaimo, B.C. and Mackenzie mill employ around 780 people. The Halsey mill south of Portland, Ore. had a workforce of 180 in February.
An agreement to sell the Nanaimo, Mackenzie and Halsey mills to PT Pindo Deli for US$105.3 million collapsed Friday. PT Pindo Deli is a subsidiary of Asia Pulp and Paper, which is owned by Indonesia's Sinar Mas Group, Asia's largest paper producer.
No reason for the transaction's failure was given, but PricewaterhouseCoopers warned in a report earlier this year that there were issues with the deal.
Bill Smiley, a representative of the Pulp, Paper and Woodworkers of Canada union that represents workers at the Harmac mill called the shutdown of the mills “very disappointing, but not unexpected.”
As for the staff: “Some are leaving town, some are in shock.”
He said many have also decided to retire, after more than 30 years in the business.
Also Wednesday, lawyers representing both Western Forest Products Inc. and Canfor Corp. argued that Pope & Talbot is in breech of agreement to pick up wood chips from their mills.
Both argued the stockpiles of wood chips are an environmental hazard and a decision must be made to remove them.
Pope & Talbot, a 160-year-old Portland-based wood products company, filed for bankruptcy in November after fighting a losing battle with the slumping U.S. housing market, a strengthening Canadian dollar which hurt its exports from B.C. into the United States, and high debt.
At the time of its bankruptcy, the company had eight mills, including several sawmills and the three pulp mills.
Last week, the company completed the sale of its sawmills in Grand Forks and Castlegar, B.C. to International Forest Products Ltd., a Vancouver company known as Interfor.
Neiman Enterprises Inc. bought the company's Spearfish, S.D. sawmill and timber assets.
 |
|
Last Updated ( Wednesday, 07 May 2008 )
|
Subscribe to this comment's feed