MONTREAL, QC — Alliance Forest Products Inc. intends to sell 200 000 hectares of timberlands at its Coosa Pines newsprint and specialty paper mill in Alabama in an effort to reduce debt and gain flex…
MONTREAL, QC — Alliance Forest Products Inc. intends to sell 200 000 hectares of timberlands at its Coosa Pines newsprint and specialty paper mill in Alabama in an effort to reduce debt and gain flexibility. Analysts say the sale could fetch about $500 million, which would rid Alliance of its long-term debt. The company obtained the timberlands when it bought the paper mill from Kimberly-Clark Corporation in 1997. Alliance said it will seek offers and ink long-term deals with the buyer for fibre supply. The sale of timberlands is common in the US, where they are mainly privately held. The buyers are usually large insurance companies looking for assured long-term yields. Canada’s forest lands are mainly crown-owned.
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