Pope & Talbot testing liquidity
August 28, 2007 By Pulp & Paper Canada
Nanaimo, BC – As part of their recent forbearance agreement with lenders, Pope & Talbot is required to solicit offe…
Nanaimo, BC – As part of their recent forbearance agreement with lenders, Pope & Talbot is required to solicit offers to purchase all or part of the companys assets or equity. But, as Chris Hamlyn of the Nanaimo News Bulletin reports, that doesnt mean that sale is imminent for any of their assets, which include the Harmac pulp mill in Nanaimo, as well as six other installations in BC.
Pope & Talbot has to find out what people would be willing to pay for the entire company or specific assets like the Harmac mill, the News Bulletin quotes Pulp & Talbot spokesman Mark Rossolo as saying. Its an exploration. Its one option of many the company is looking at.
The company fell out of compliance with its lenders in late June because it was unable to generate the minimum earnings before interest, taxes, depreciation and amortization. In addition to soliciting offers, it is also exploring other alternatives to improve its balance sheet and generate cash, such as other capital infusions. Pope & Talbot is also analysing its ability to restructure its debt and other liabilities.
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