Pope and Talbot Inc. has sold another two B.C. sawmills to Indonesia's Sinar Mas Group (SMG) for US$6.8 million.
The Oregon-based company will receive US$6 million and US$750,000, respectively, from the sale of its Fort St. James and Midway sawmills.
Subject to approval from the U.S. Bankruptcy Court and the Canadian court as well as customary regulatory approvals in the U.S. and Canada, both sales are expected to close in 2008's second quarter.
The deal with SMG, one of Asia's largest pulp producers, supplements SMG's US$225 million bid for Pope and Talbot's three pulp mills in Nanaimo, Mackenzie, B.C. and Halsey, Oregon.
All the asset sales come after Pope and Talbot filed for creditor protection in late October under the Companies' Creditors Arrangement Act.
In its second quarter ending June 30, 2007, the company reported a US$30.3 million net loss, up from a net loss of $10.5 million in the same period in 2006.