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RESTRUCTURING HOMEPAGE
 

As you may have heard, in addition to the relief Pope & Talbot recently obtained under the Canadian Companies' Creditors Arrangement Act (CCAA), on November 19, 2007, Pope & Talbot sought protection in the United States by filing voluntary petitions for business reorganization under Chapter 11 of the U.S. Bankruptcy Code.

While Chapter 11 and CCAA filings are complicated, these are some important highlights:

  • The company has entered into Asset Purchase Agreements for substantially all of its operating assets. The Company has received authorization to complete the sales from both the U.S. Bankruptcy Court and the Canadian Court supervising the CCAA.
  • One asset purchase agreement covers the sale of the Company’s Grand Forks, Castlegar, and Spearfish sawmills, along with associated timber resources, to International Forest Products Limited (“Interfor”). Interfor assigned its rights and obligations under that asset purchase agreement as they relate to the Grand Forks and Castlegar mills (and related assets) to an affiliate of Interfor, and assigned its rights and obligations under the agreement, as they relate to the Spearfish Mill, to certain affiliates of Neiman Enterprises, Inc (“Neiman”).
  • A separate asset purchase agreement covers the sale of the Company’s three pulp mills to PT Pindo Deli (“PT Pindo Deli”). PT Pindo Deli assigned its rights and obligations under that asset purchase agreement to two affiliates of PT Pindo Deli.
  • A separate asset purchase agreement covers the sale of the Company’s Fort St James sawmill to PT Pindo Deli. PT Pindo Deli subsequently assigned its rights and obligations under that asset purchase agreement to an affiliate of PT Pindo Deli.
  • At the present time, the Company expects these transactions to be concluded during the 2Q08. However, at the present time, the closings remain subject to the satisfaction of a variety of material conditions.

For more detailed information, please consult the links below.

For documents related to Canadian proceedings:
http://www.pwc.com/car-poptal

For forms and documents related to Chapter 11 proceedings: http://www.kccllc.net/popetalbot