Pope and Talbot has Another 10 Days

Wednesday, October 17, 2007 04:01 AM

Pope and Talbot has been given another extension on its agreement with its lenders.

The financially struggling company now has access to revolving credit until October 26th.

The company will use this additional time to continue to explore options for improving its balance sheet, including, but not limited to, the sale of certain or all of the company's assets.

Pope and Talbot owns the Ft. St. James sawmill and the Mackenzie Pulp mill. It also owns a pulp mill in Nanaimo, and saw mills in Midway, Grand Forks and Castlegar.

The company recorded a $42.9 million dollar loss in the second quarter of this year, and $18.6 million in the first quarter.

As with other companies, the strong Canadian dollar, and the downturn in the U.S. housing market are being blamed.

Earlier this year, the company announced it was looking at ways to restructure its debt, "including, if necessary bankruptcy proceedings." Pope and Talbot has been looking for a buyer for some or all of its holdings. It was taken off the New York Stock Exchange in September when the stock failed to trade at levels required by the NYSE.

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Posted on Wednesday, October 17, 2007 04:01 AM in News by 250 News

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Comments

Posted by: Andyfreeze on October 17 2007 8:54 AM

They are toast me thinks,...but apparently their are potential buyers in the wings.
Time will tell, but a sad state of affairs for those who work there!

Posted by: Harbinger on October 17 2007 10:03 AM

I bet some people are wishing the NDP were in power now and P& T could be saved like Skeena was. But then again, look at the Skeena bailout situation today. The Peoples Pulp Mill of B.C? Ya right. Socialism sucks.

Posted by: Andyfreeze on October 17 2007 11:46 AM

NDP would be the LAST thing they need!
Prince Rupert is still paying the price for that farce!

Posted by: diplomat on October 17 2007 1:42 PM

Pulp appears to be doing well so how was this company being managed? Perhaps bankruptcy can clear the financial deck and entice smart buyers to purchase what is useful and continue with a better operation.

No government bailouts, please!

Posted by: Andyfreeze on October 17 2007 2:20 PM

Exactly Diplomat.
Unfortunately,pulp is doing much better than lumber and that will likely continue for a while.
There has been a lot of interest with a couple of major players still kicking boards around onsite.
My guess is a sale will happen soon.

Posted by: mythoughts on October 17 2007 7:28 PM

Does anyone know who is interested in buying P&T?

Posted by: Andyfreeze on October 17 2007 8:49 PM

There have been several names tossed around apparently.
Tolko,West Fraser,and Asia Pacific.
(would that be the Asia Pacific vultures of Prince Rupert fame?)
Of course it may all be rumours too.
I do know there has been a lot of action up at the sawmill in Fort St.James.
And hey,what the hell...if you haven't heard a rumour by noon...start one!

Posted by: northman on October 18 2007 8:10 AM

Starbucks is buying it..

Posted by: Andyfreeze on October 18 2007 9:09 AM

good rumour northman!

Posted by: dgdiggler on October 18 2007 9:38 PM

Timberrrrrrrrrrrrrrrrrrrrrr....*crash*