Pope & Talbot files for bankruptcy in Canada

Lumber producer Pope & Talbot has filed for bankruptcy protection in Canada, according to a company filing with the Securities and Exchange Commission.

The company cited a stronger Canadian dollar, coupled with “record low demand for lumber” as leading to the company’s need for protection from creditors.

In its second quarter, Pope & Talbot reported a loss of US$42.9 million compared with losses of US$21.8 million in the same period last year. Sales were US$236.6 million, up from sales of US$213.6 million last year. The company ended the second quarter with US$354.9 million in debt, and its shares were delisted from the New York Stock Exchange in August.

The company also said “high-priced pulp chips and sawdust” and “the high cost of debt service have combined for an untenable business environment.” If the company’s bankruptcy filing is approved, it will begin a restructuring process that could include “the sale of certain or all of the company's assets.”

Based in Portland, Ore., Pope & Talbot produces market pulp and softwood lumber at mills in the United States and Canada.

Want to read more?
This content is available only to registered users. Log in to read the rest of this article or create a free account.
© 2014 Home Channel News. All Rights Reserved.