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Pope & Talbot Halsey mill sale procedures approved
By Caroline Salls
Pittsburgh, May 14 - Pope & Talbot, Inc. obtained court approval of the bid procedures for the proposed sale of its Halsey, Ore., pulp mill, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.
The company said the Halsey mill is its primary asset in the United States.
Pope & Talbot said it has decided that the best way to preserve the value of its estates is to sell the mill, although the company's board of directors does not agree.
The sale proceeds will be paid to repay Pope & Talbot's debtor-in-possession facility lenders.
According to the motion, Pope & Talbot lenders Ableco Finance LLC and Oak Hill Advisors, LP have offered to pay $10 million for the mill assets, as well as 30% of all eligible mill inventory as of the sale closing date.
The company said the purchase price could also be paid in the form of a credit bid against obligations owed to the lenders.
Bids are due by 4 p.m. ET on May 23, and all bids must include a deposit of 10% of the proposed purchase price.
Bidding will begin at the purchase price stated in the highest qualified bid. The initial overbid must be for at least $150,000 more than that bid, and all subsequent bids must be at least $150,000 higher than the previous bid.
The auction will be held on June 3, and the sale hearing is scheduled for June 9.
As previously reported, the Halsey mill was scheduled to be sold under an asset purchase agreement with PT Pindo Deli Pulp & Paper Mills, which has been terminated.
Pope & Talbot, a Portland, Ore.-based pulp and wood products company, filed for bankruptcy on Nov. 19, 2007. Its Chapter 11 case number is 07-11738.
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