Pope & Talbot announces Canadian CCAA filing
October 30, 2007 By Pulp & Paper Canada
Portland, OR — Pope & Talbot announced that, in order to address its financial challenges and to support efforts t…
Portland, OR — Pope & Talbot announced that, in order to address its financial challenges and to support efforts to be a more efficient organization, the company and its U.S. and Canadian subsidiaries have applied for protection under the Companies’ Creditors Arrangement Act (CCAA) of Canada. Pope & Talbot’s Board of Directors, in a unanimous decision, directed the company to take this action as the best alternative for the long-term interests of the company, its employees, customers, creditors, business partners and other stakeholders.
“We want to assure our customers and employee colleagues that Pope & Talbot is taking all available steps to allow its business to continue operating as a going concern,” said Harold Stanton, president and CEO. “Our customers can continue to rely on Pope & Talbot to supply their critical business needs. This protection is a necessary and responsible step for the company at this time. Our customers and business partners want Pope & Talbot to succeed, not only because of our over 150-year heritage, but because of the value our company brings to the marketplace.”
Citing persistent record low demand for lumber, high prices for pulp chips and sawdust, the appreciation of the Canadian dollar and the high cost of debt service, and despite other actions taken to preserve liquidity, Pope & Talbot has determined the best alternative is to seek protection and flexibility under the reorganization law in Canada, where its principal operating subsidiary is located. The company will use the protections of the CCAA to provide additional time for it to continue its restructuring efforts, which include, but are not limited to, the sale of certain or all of the company’s assets. Pope & Talbot expects to fund current operating needs, including wages, benefits and other operating expenses, with cash generated from daily operations while under CCAA protection.
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