Pope gets permission to file U.S. bankruptcyPortland Business Journal
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Pope & Talbot Inc. received permission from a Canadian court Friday to file bankruptcy in the United States.
The Portland-based pulp and lumber company (Pink Sheets: PTBT) sought protection earlier this week under the Companies' Creditors Arrangement Act, the Canadian equivalent of a Chapter 11.
It was the third-largest filing ever by an Oregon company. Pope & Talbot had $682 million in assets at the time of its last regulatory filing.
The company, which has been hampered by a crushing housing slowdown and a strong Canadian dollar, did not indicate if a U.S. filing was imminent.
Pope & Talbot also disclosed that it will return to court "shortly" to get approval for a short-term loan from its creditors. As reported in today's Business Journal, the company is dangerously short on the cash it needs to continue operating while in bankruptcy.
If it's unable to secure such financing, Pope & Talbot could be forced to shut its doors and liquidate assets, a worst-case scenario for employees and creditors.
In an affidavit filed with the court, Chief Financial Officer Neil Stuart said the company may need to file a Chapter 11 in order to secure the interim financing, which is known as debtor-in-possession financing.
Pope & Talbot employs 2,300 in the United States and Canada. The company has 280 employees in Oregon -- 180 at a mill in Halsey, Ore., and another 100 at its Portland headquarters.
Shares closed down 12 percent at 15 cents. The stock traded for $8 as recently as May.
sorry they got permission to file now....they require dip financing...assume they will
