The Wood and Fiber Supply Chain Experts
News
From the June 2010 Forest2Mill newsletter.
Georgia Pacific Buys Alabama River from Parsons and Whittemore
Georgia-Pacific, which owns 39 mills throughout the mid-South, has
reached an agreement with Parsons and Whittemore, the owner of Alabama River and Alabama Pine pulp
mills in Perdue Hill, Ala., to purchase the two mills and their assets.
The additional assets included in the deal are Alabama River Woodlands, chip mills at Elba
and Jacksons Gap, a pulpwood yard at Demopolis, a tall oil plant and a biodiesel plant. These
assets will join the seven pulp and paper mills, five chip mills and one woodyard that
Georgia-Pacific currently operates in the South.
Dixie Pellet Assets Sold
On May 17, U.S. Bankruptcy Court approved the sale of Dixie Pellets'
assets. At the time it filed for bankruptcy in September 2009, Dixie Pellets reported $70
million in debt. When announced, the plant was expected to cost $75 million to build.
How much money did Dixie raise in the sale? The bulk of the money was raised from the sale
of the plant. Zilkha Biomass Energy of Houston, a company that develops small-scale combined heat
and power projects using its Zilkha Biomass Unit, purchased the facility for $6.25 million. No
report on what Zilkha plans for the site or the equipment. Also included in the sale were 10
barges, which sold to BKM Holding LLC for $3.8 million and a tugboat that sold for $30,000.
In total, the $10 million raised in the bankruptcy sale will not go far. Dixie Pellets’
current debt includes over $35 million in claims from creditors, $188,000 in property taxes, plus
undisclosed amounts for attorneys’ fees and other recovered charges allowed under bankruptcy
law.
Additional Stories from the June 2010 Forest2Mill Newsletter:
Industry
Performance Overview
Housing
Market Update
Chip
Prices in the South and PNW Near Parity
“
Got Trees?” Check-Off Programs in the Forest Products Industry
Common
Ground in the Forest