Vancouver, BC — Pope & Talbot’s bankruptcy case will be moving from Ontario to British Columbia, according to a re…
Vancouver, BC — Pope & Talbot’s bankruptcy case will be moving from Ontario to British Columbia, according to a recent report by the Canadian Press. The province of BC had moved to transfer the bankruptcy protection proceedings to the BC Supreme Court, noting that the company has substantial connection to British Columbia, employing more than 1,700 employees and holding significant assets, and is in a complex resource industry, subject to numerous provincial laws and regulations covering the environment, water, forests, pensions, workers compensation, employment standards and labour relations. The Ontario court has agreed.
BC Forest Minister Rich Coleman noted that now stakeholders in BC would be represented in the case. “It has significant impact whatever happens with Pope & Talbot,” the Canadian Press quote Coleman as saying.
The Portland, Oregon-based company announced recently that it has agreed to sell three sawmills, two in BC and a third in South Dakota, and timber cutting rights to Interfor for about $69 million plus the value of certain current assets and liabilities. The sale of the three mills is subject to approvals by the U.S. Bankruptcy Court and the Canadian court. The process allows for the possibility of competing bids.
The company has been experiencing difficulties linked to the rising Canadian dollar, low demand for lumber caused by poor housing markets in the US, and the high price of pulp chips.
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