Pope & Talbot lenders agree to waive budget deviation DIP defaults

By Caroline Salls

Pittsburgh, Jan. 11 - Pope & Talbot, Inc. and its wholly owned Canadian subsidiary Pope & Talbot Ltd. entered into a second and third waiver of budget deviation defaults on its debtor-in-possession credit agreement, according to an 8-K filed Friday with the Securities and Exchange Commission.

Under the second waiver, Pope & Talbot's DIP lenders waived any default resulting from budget deviations related to disbursements for payroll and other taxes and receipts.

Meanwhile, under the third waiver, the DIP lenders agreed to waive any default arising from budget deviations related to lumber duties and insurance.

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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