PORT ANGELES — Since Sterling Savings Bank holds a lien on the closed KPly mill, sorting out the details on who will get what when the Port of Port Angeles acquires the mill through a default judgment may not be all that simple, said Josh Renshaw, a former employee and prospective buyer.
That’s why Renshaw said he hopes to meet with representatives from Sterling Savings Bank and port officials to sort things out.
Renshaw’s effort to buy the mill is supported by four local but unnamed financial backers.
“We would like to hammer out who would control the assets,” Renshaw said.
“We can’t make an offer if we don’t know who will own what.”
A lien agreement between Klukwan and Sterling Savings may complicate efforts to acquire the mill, said port Executive Director Bob McChesney.
“But that’s subject to some legal consideration, which is still unsettled,” he said.
Renshaw said he needs $5 million to reopen the mill.
That figure is broken down to $1 million in local money, a $1 million loan from the state and $3 million in bank loans.
The port issued a judgment in Clallam County Superior Court on Sept. 26 that demands that mill owners Klukwan Inc. pay $212,788.71 for back rent and another $1,826.25 in attorney’s fees at a 12 percent interest.
The judgment clears the way for the port to acquire the mill.
Klukwan closed the mill on Nov. 2, laying off 132 workers. The closure was made permanent in April.
Twenty days are allotted for delivery of the default judgment, with another 20 permitted if the first attempt is unsuccessful.
The port may acquire the mill after that point.
Reporter Tom Callis can be reached at 360-417-3532 or tom.callis@peninsuladailynews.com.
