Pope & Talbot amends DIP facility to obtain waiver of budget deviation defaults

By Caroline Salls

Pittsburgh, Dec. 28 - Pope & Talbot, Inc. and its wholly owned Canadian subsidiary, Pope & Talbot Ltd., entered an amendment to their debtor-in-possession credit agreement under which the lenders have agreed to waive any default arising from budget deviations, according to an 8-K filed Friday with the Securities and Exchange Commission.

Specifically, the amendment waives any default or event of default resulting from a material adverse deviation from the budget in connection with disbursements for professional fees, chemicals and utilities/energy.

The amendment also gives the company a one-business-day grace period in connection with its requirements to deliver variance reports to the DIP lenders.

Pope & Talbot, a Portland, Ore.-based pulp and wood products company, filed for bankruptcy on Nov. 19 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 07-11738.

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