Pope & Talbot gets interim OK to extend DIP loan maturity to April 4

By Caroline Salls

Pittsburgh, Feb. 27 - Pope & Talbot, Inc. received interim court approval to extend the maturity of its debtor-in-possession facility to April 4 from Feb. 27, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing on the DIP facility amendment is scheduled for March 11.

According to the motion, the company needs continued DIP financing to finance its estates and complete its asset sale.

Under the DIP loan amendment, the company must appoint a chief restructuring officer by March 1.

The DIP lenders' obligation to issue, amend, renew or extend any letters of credit after the amendment effective date was also eliminated.

In addition, the deadline for completion of the sales of the company's wood products and pulp business were also extended to April 4 from Feb. 15.

Pope & Talbot will pay a $50,000 amendment fee.

Pope & Talbot, a Portland, Ore.-based pulp and wood products company, filed for bankruptcy on Nov. 19. Its Chapter 11 case number is 07-11738.

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