Saturday, February 02, 2008

HARMAC PULP MILL FUTURE STILL UNCERTAIN

NO ANNOUNCEMENTS
AS BID DEADLINE PASSES


It is reported in the local press that acceptance of an offer to buy the troubled local pulp mill is not yet being announced. A company spokesman said that if any offers other than the Asia Pulp and Paper offer of $10 million for Harmac have been made, they won't be announced until next week.
The offer to buy the Harmac mill also included an offer of $50 million to buy the mill at Halsey Oregon and $40 million for the mill at MacKenzie B.C. Pope and Talbot who pesently own all three mills want to sell the mills as a package deal.
Apparently if no other offers are on the table, it will be up to the bankruptcy courts in the US and Canada to decide if the offer from Asia Pulp and Paper will be accepted.
Concern has been expressed about the future of the Harmac mill if the APP offer is accepted as they could simply close the mill rather than invest in major capital upgrades needed to make the mill viable.

allvoices

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