PORT TOWNSEND — PT Holdings Company Inc., parent company of Port Townsend Paper Corp., is facing a new and serious hurdle.
It must make a $7.5 million interest payment on April 17 — or possibly default on its financial obligations, a company official confirmed Tuesday.
PT Holdings Chief Financial Officer Timothy P. Leybold said the company, Jefferson County’s largest industrial employer with more than 280 jobs at Port Townsend Paper, will need an additional $5 million of liquidity to make the interest payment.
He wouldn’t speculate about what would happen if the company didn’t come up with the money — and said he had no comment beyond a press release issued last Friday.
The press release said:
“Management intends to schedule a conference call [with creditors and analysts] on May 4, 2006 to discuss the 2002 – 2004 audited financial statements, 2006 first quarter operating results, and its continuing plans to assure the Company has adequate liquidity and capital resources to maintain its current operations.”
The April 17 deadline was highlighted by Standard & Poor’s Ratings Services in New York City as it announced that it was lowering the company’s corporate credit and senior secured ratings to CCC from CCC-plus.
“The outlook is negative,” the ratings services added.
