Mackenzie Mill Part of Tentative Deal

Thursday, January 10, 2008 04:43 PM

Prince George, B.C. - The Mackenzie Pulp mill may soon have a new owner.

Pope & Talbot has announced the Mackenzie mill is one of three pulp mills it will sell to one or more affiliates within the Sinar Mas Group. Sinar Mas is the largest producer of pulp and paper in Asia and is one of the top five in the world.

The value of the transaction to Pope & Talbot is approximately $225 million, including the assumption of certain liabilities and $100 million of working capital proceeds that is not subject to the sale, to be realized after closing.

The other two mills that make up the deal are in Nanaimo and in Halsey Oregon.

"We are delighted with this development, as this is an important milestone in maximizing value for our stakeholders." said Harold Stanton, Pope & Talbot President and CEO. "The past 6 months have been very trying on our folks and it is exciting that they will have the opportunity to join a world class pulp and paper producer like Sinar Mas Group."

The sale is subject to approval by the US Bankruptcy Court and the Canadian Court,. Pope & Talbot expects to receive such approvals and close the transaction in the first quarter of 2008.

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Posted on Thursday, January 10, 2008 04:43 PM in News by 250 News

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Comments

Posted by: YamaDooPolCat on January 10 2008 10:55 PM

Hope this helps the real estate in Mackenzie

Posted by: Parrothead on January 11 2008 7:46 AM

I'm with you, Cat. I feel for the people of Mackenzie.

Posted by: lmorg on January 11 2008 8:16 AM

What's Sinar Mars going to do with it? The markets are as bad as ever. Bet the Mill only changes ownership and sits dormant until markets improve. Sinar Mars, being so big can probably afford to do this.

"maximizing value for our stakeholders" means the owners, not the people of Mckenzie who are out of work.

Posted by: pulpworker on January 11 2008 11:07 AM

markets aren't bad. pulp is high and still climbing. maybe some deep pockets and forward thinking can make this one of the best mills in the world. other than siberia this is the best fibre basket in the world.