Court Denies APP Purchase Of Pope & Talbot
June 2, 2008 By Pulp & Paper Canada
Failure to sign a purchase agreement has cost Asia Pulp and Paper control of Pope & Talbot’s Fort St. James sawmill…
Failure to sign a purchase agreement has cost Asia Pulp and Paper control of Pope & Talbot’s Fort St. James sawmill.
The BC Supreme Court ruled against the Indonesian company, saying it neglected to sign the agreement before Pope & Talbot went into receivership on May 10. As a result, PricewaterhouseCoopers, the receiver, is not legally required to honour the deal, the Vancouver Sun reported.
The decision will potentially allow for higher bids. The Sun confirmed that PricewaterhouseCoopers informed the court it had received six expressions of interest or offers to buy the mill, and that it believes the mill could sell for $6 million more than APP was bidding.
The mill was shut down in November, putting 272 people out of work.
A decision on an application filed by the BC government on whether or not it will be responsible for environmental clean-up costs at Pop & Talbot’s two BC pulp mills will not be made until next week. The two pulp facilities, at Mackenzie and Harmac, have also been shuttered and are for sale.
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