Inland Fiber enters tentative agreement to buy $225 million 9 5/8% notes through pre-packaged plan

By Caroline Salls

Pittsburgh, Feb. 28 - Inland Fiber Group, LLC and Fiber Finance Corp. reached a tentative agreement with the trustee for the company's $225 million of 9 5/8% senior notes due 2007, under which the company would buy all outstanding notes through a pre-packaged plan of reorganization, according to a company news release.

Under the terms of the tentative agreement, the company would buy the notes at a price of 69% of the principal amount.

The settlement would include the alleged existing defaults, the termination of all pending litigation and a release of all the parties.

Completion of the settlement is subject to the commitment to support a pre-negotiated plan of reorganization by a sufficient number of noteholders and the receipt of financing to fund the settlement.

The company said it has agreements in principle for the financing, and it expects to finalize the financing arrangements within the next several weeks.

Inland Fiber is a Klamath Falls, Ore., timber grower.

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