PORT TOWNSEND – Port Townsend Paper Corp. on Wednesday filed a disclosure statement in U.S. Bankruptcy Court in Seattle, outlining its plan for resolving the mill’s outstanding debts owed to both secured and unsecured creditors.
Mark Northrup, attorney for Seattle’s Graham & Dunn, said the plan doesn’t do enough for the unsecured creditors who have filed claims – a group which includes more than 65 individuals, businesses, government agencies and nonprofit organizations in Port Angeles, Port Townsend, Port Hadlock, Quilcene, Sequim, Carlsborg, Forks and Neah Bay – since it proposes giving some as little as 5 cents on the dollar for their claims.
The filing was in preparation for a Wednesday hearing before Western District Judge Samuel L. Steiner, who has presided over the case since the company filed for Chapter 11 bankruptcy protection on Jan. 29.
The hearing, in which the company seeks approval of the disclosure statement and exiting financing commitment letter, will address unsecured creditors’ objections or appeals regarding the company’s proposal.
All creditors in the case have been awaiting the disclosure statement, said John Begley, Port Townsend Paper Corp. chief executive officer, and will be working closely with company attorneys in the coming days.
“Their response is very important,” Begley said.
