PORT TOWNSEND – Port Townsend Paper Corp. announced Thursday that the federal bankruptcy court has given final approval to financing that permits the company a $13 million revolving line of credit to pay off some of its debts and restructure other debts.
The firm – which owns a mill in Port Townsend that produces kraft paper for commercially used boxes and employs 310 people in Jefferson County – filed for Chapter 11 bankruptcy protection on Jan. 29.
The debtor-in-possession financing given final approval on Thursday was approved on an interim basis by the U.S. Bankruptcy Court for the Western District of Washington on Jan. 31.
The company also announced Thursday that it filed its reorganization plan and disclosure statement with the court on Wednesday.
The company’s plan calls for, among other things, the repayment in full of logger’s liens and other claims from suppliers when the plan is put into effect, said a written statement from the company.
It will continue to negotiate with various other creditors to restructure its debt.
“Our organization is focused on completing this reorganization as expediently as possible,” said Timothy P. Leybold, chief financial officer, in the statement.
“The filing of our plan and disclosure statement within 30 days from entering Chapter 11 is evidence of our commitment to a fast track emergence from bankruptcy with a revitalized balance sheet.”
The company’s Canadian subsidiaries are not part of the Chapter 11 filing.
In addition to the Port Townsend mill, the company also owns three Crown Packaging Plants and two BoxMaster Plants, which are located in British Columbia and Alberta.
For more information on Port Townsend Paper Corp., see the company’s Web sites at www.ptpc.com and www.crownpackaging.com.
