MARYSVILLE — Crown Pacific Partners LP is negotiating a bankruptcy reorganization plan that calls for selling the company’s Marysville sawmill and tracts of forestland in Snohomish County.
The Portland, Ore., forest products firm revealed the likelihood that it will sell "virtually all" of its assets in its annual report filing this week.
The filing with the U.S. Security and Exchange Commission also included a "going concern" warning from the company’s auditors, meaning Crown Pacific is unlikely to recover from its heavy debt load.
Previously, Crown Pacific officials said the firm might be able to exit Chapter 11 reorganization with its operations intact.
Despite the company’s ongoing troubles and bleak future, spokesman John Mangan said its mills and timber harvesting have remained largely unaffected so far.
The south Marysville mill, which employs about 40 people, cuts softwood such as Douglas fir into dimensional lumber. Crown Pacific also owns thousands of acres of timber in the North Cascades.
"Obviously, those operations continue," Mangan said. "They’re not really the subject of the challenges we face right now. The challenges are more structural."
The future of the mill and other Crown Pacific assets, however, could change with new owners.
Founded in 1988, Crown Pacific has reported net losses in each of the last 13 quarters. In June, after trying to restructure its increasing debt, the company filed for Chapter 11. As of Dec. 31, liabilities totaled $547 million.
On Friday, Crown Pacific’s stock fell 3.5 cents, or 44 percent, to close at 4.5 cents a share. Crown Pacific said the ownership units held by its executives and other owners would be worthless if the company breaks up.
Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.
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