Sat, Dec 20, 2014, 1:06 PM EST - U.S. Markets closed

Recent

% | $
Quotes you view appear here for quick access.

Pope & Talbot Inc. Message Board

  • pulpeeee pulpeeee Feb 13, 2008 1:17 AM Flag

    unsecured creditors will likely end up empty-handed.

    Pope & Talbot's unsecured creditors will likely end up empty-handed.

    The bankrupt company announced deals Tuesday for its last two lumber mills. The deals will leave the company millions of dollars short of repaying its debts.

    The nearly 160-year-old Portland-based wood products company filed the third-largest bankruptcy in state history in November after fighting a losing battle with the slumping housing market, a strengthening Canadian dollar, and high debt levels.

    In order to secure an emergency $89 million loan, the company subsequently agreed to sell all of its assets by mid-February.

    Pope & Talbot already reached deals to sell six mills throughout the region for a total of $174.3 million. The remaining lumber mills, in the British Columbia cities of Fort St. James and Midway, proved to be the least attractive to investors.

    A subsidiary of Sinar Mas, Asia's largest paper producer, will buy the Fort St. James mill for roughly $6 million. Hamilton, Mont.-based Fox Lumber Sales Inc. will buy the Midway mill for $750,000. The deals are subject to court and regulatory approval.

    Together with $20 million in real estate sales and the previously announced mill sales, that means Pope & Talbot will raise around $200 million to repay creditors.

    That's not nearly enough.

    The company's secured debts, which are the first to be repaid during a bankruptcy, include the emergency $89 million loan and a $247 million credit facility.

    Pope & Talbot's unsecured creditors include the Bank of New York Trust Co., which holds $135 million in unsecured Pope & Talbot bonds.

    The company's shares (Pink Sheets: PTBT), which traded for around $6 at this time last year, trade for 3 cents today.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
 
PTBTQ.PK
0.00210.0000(0.00%)Oct 30 2:13 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
3M Company
NYSEFri, Dec 19, 2014 4:04 PM EST
ImmunoGen, Inc.
NASDAQFri, Dec 19, 2014 4:00 PM EST